Changi Airport Group makes Italian investment
SINGAPORE, 1 March 2010 - Changi Airport Group (CAG), through its wholly-owned subsidiary Changi Airports International (CAI), has acquired a 5% stake in Gemina S.p.A., the holding company of Aeroporti di Roma (AdR).
The S$100 million acquisition makes CAI one of the key shareholders of Gemina S.p.A., which is listed on the Milan Stock Exchange. It represents CAI’s largest investment to date and marks a major step forward in CAG’s strategy to expand overseas as it enters the well-established European aviation market.
AdR owns the concession to operate Italy’s largest airport group, comprising the Leonardo da Vinci Airport and the Giovan Battista Pastine Airport (also known as Fiumicino and Ciampino airports respectively). Both airports serve the capital city of Rome, and together, handled over 38.6 million passengers and 382,082 aircraft movements in 2009. Leonardo da Vinci Airport is the sixth largest hub in Europe, handling more than 33.8 million passengers last year. In January 2010, AdR continued its strong recovery from the global economic crisis as it registered 12.0% growth in passenger volumes.
The investment is an integral part of a strategic industrial partnership to be forged with the shareholders’ pact of Gemina S.p.A. which includes, amongst others, Investimenti Infrastrutture (a company of Sintonia S.p.A.), Mediobanca, Assicurazioni Generali and UniCredit.
Under the proposed industrial partnership, CAI will play a key role in the future expansion and development of the Rome airport group by establishing a long-term technical partnership with AdR to provide management support in areas such as airport operations, commercial development and master planning. In addition, CAI will also be represented on the Board of Directors of both Gemina S.p.A. and AdR.
Mr Lee Seow Hiang, Changi Airport Group’s Chief Executive Officer, said the deal - the Group’s second since its corporatisation in July last year - sets a milestone for CAG.
“With this investment, CAG becomes the first Asian operator to invest in a European capital city airport with a substantial strategic role. Rome, one of Europe’s leading capitals, has over 3 million people and is the primary gateway to Italy, Europe’s fourth largest economy and population.”
Mr Lee added, “CAG is proud to be associated with AdR’s ambitious plan to develop the airports into world-class assets. We will leverage our experience and expertise to assist AdR and look forward to working with the shareholders and management of Gemina and AdR to achieve the full development and commercial potential of the Rome airports.”