MOSCOW: Perspektiva LLC, a subsidiary of the Sheremetyevo Airport, has won the bidding war to acquire the Domodedovo Airport and will pay a...
MOSCOW: Perspektiva LLC, a subsidiary of the Sheremetyevo Airport, has won the bidding war to acquire the Domodedovo Airport and will pay a price of 66 billion rubles or $866 million for the airport’s assets.
TASS has compiled the key details of the auction results.
About the auction
- Perspektiva LLC, a subsidiary of the Sheremetyevo Airport, has won the auction for the acquisition of the Domodedovo Airport, bidding 66 billion rubles or $866 million for the asset, according to a statement from PSB Bank (the auction organizer and seller).
- Five bids were submitted for the auction, but only two were admitted.
- As indicated in the minutes on the GIS Torgi website, only Perspektiva LLC participated in the sale procedure through a public offering. The contract with the buyer will be signed within five business days.
- In accordance with the law and the auction regulations, the transfer of property and registration of ownership rights must be completed within 30 calendar days of the date of payment.
- The sale was conducted as a public offer, using a Dutch auction with a descending price.
- The starting price was set at approximately 132.3 billion rubles ($1.7 bln), with a descending increment of approximately 13.2 billion rubles ($173.3 mln).
- Vnukovo Airport was also ready to buy the assets for 66 billion rubles ($866 mln) but Sheremetyevo Airport submitted its bid first and Vnukovo decided not to outbid it, the airport's press service told TASS.
- The sale of Domodedovo Group assets took place on the second attempt.
- The first auction, scheduled for January 20, was declared void.
- The only individual bid, made by entrepreneur Evgeny Bogaty, was not accepted.
Transport Ministry response
- The Russian Transport Ministry does not object to the winning bidder in the sale of Moscow's Domodedovo Airport, the ministry's press service told reporters.
- The ministry stated that together with the Federal Aviation Agency (Rosaviatsiya) it will support the airport's new owner's initiatives in the interests of passengers and carriers.
- Domodedovo Airport is an asset with significant debt and requires significant financial investment, the Transport Ministry noted.
- The ministry expects the new owner to resolve Domodedovo's infrastructure issues.
Statements by Sheremetyevo Airport CEO
- Sheremetyevo Airport used its own funds to acquire Domodedovo Airport at auction, without borrowing, said Mikhail Vasilenko, Sheremetyevo Airport CEO.
- Following the change of ownership, Domodedovo Airport staff will be provided with guarantees of stable operations and wages, as well as job security, he noted. Vasilenko also called Domodedovo a business project aimed at reviving an important part of the Moscow air hub.
The Finance Ministry’s position
The acquisition of Domodedovo Airport will provide Sheremetyevo Airport with a base for expansion, Russian Finance Minister Anton Siluanov said.
He noted that Sheremetyevo Airport's professional experience in managing air hubs and its commitment to further developing Domodedovo Airport were mandatory requirements for the airport sale.
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