Fraport Group is selling its 24.5% stake in Xi’an Xianyang International Airport Company to Chang’an Huitong Co. Ltd for RMB1.1 billion (US$175 million). The move marks the exit of the German airport company from the China market.
Fraport acquired its stake in Xi’an Airport in 2008. The transaction requires several steps to be completed, with conclusion expected in the second quarter of 2022.
Fraport CEO Dr. Stefan Schulte explained: “We reflect on our activity in Xi’an with great satisfaction, but also some disappointment. On the one hand, the Xi’an subsidiary gave us an opportunity to showcase our expertise in airport management. Indeed, over the past 14 years, Fraport successfully developed Xi’an from a medium-sized regional airport with about 10 million passengers annually to one of China’s largest aviation gateways, serving more than 40 million passengers per year.
“On the other hand, we always regarded our minority stake in Xi’an as a starting point for expanding our business in China – the most populous country in the world. However, this never materialised in Xi’an or at any other Chinese airport. Consequently, we have now decided to cease our activities in the Chinese market. With gratitude, we thank our partners at Xi’an Airport and the entire region for their excellent support. We also wish Xi’an Airport all the best for the future.”
Fraport expects the sale to have a positive impact on both its operating result (EBITDA) and the financial result (net profit). Fraport’s net financial debt will be further reduced by the cash inflow from selling the stake.
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