Edinburgh Airport sale to formally take off

UK airports operator BAA's financial advisers on the sale of Edinburgh Airport (EDI) are expected to send out information memoranda to parties interested in bidding for the asset in mid-to-late January, Dow Jones Newswires reported.

BAA announced its intention to sell EDI in October, following a 2009 requirement by the UK Competition Commission to divest one of its two Scottish airports as well as two London airports. BAA sold London Gatwick to a consortium led by Global Infrastructure Partners for £1.5 billion in October 2009, but it is appealing the requirement to dispose of London Stansted.

BAA appointed investment banks Citigroup and BNP Paribas to handle the sale of EDI in November and it aims to finalize the deal by summer. The sale of EDI, which is Scotland's largest airport in terms of passenger throughput, could net between £400 million and £600 million, according to analysts.

Several groups are reportedly preparing to bid for the airport, including a consortium formed by the US asset management firm Carlyle Group and Noble Grossart, an Edinburgh-based merchant bank. Private equity firm 3i Group is understood to be working with UK pension fund investor Universities Superannuation Scheme and London-based fund manager M&G to submit a joint bid, while also Global Infrastructure Partners, Aeroports de Paris and Souter Investments are believed to be contemplating offers for EDI. Souter Investments is the buyout vehicle of Brian Souter, the Scottish founder of rail and bus group Stagecoach.