Airport purchase set to give town financial boost
10:24am Saturday 2nd March 2013 in Local
BOLTON Council hopes the acquisition of a major international airport by a company it part-owns will give it a much-needed financial boost.
A deal has now officially been signed by Manchester Airports Group (MAG) — which the council owns a stake in — to buy the country’s fourth busiest airport, Stansted.
MAG already owns and operates Manchester, East Midlands and Bournemouth airports, but began a £1.5 billion move to acquire Stansted, in Essex, after its owner Heathrow Airport Holdings — formerly called BAA — was ordered to sell it by the Competition Commission.
MAG is owned by all 10 Greater Manchester authorities, with Manchester owning 55 per cent and the other nine councils, including Bolton, previously owning five per cent each.
That figure will now fall after MAG struck a deal to finance the move with Industry Funds Management (IFM), which will take a 35.5 per cent. The nine councils will each now have a 3.2 per cent stake.
Last year, Bolton received a £1 million dividend from its share, which was spent on community projects, and even though its stake will now be reduced, town hall bosses hope the size of MAG’s new operation will further boost its coffers.
Sean Harriss, Bolton Council chief executive, has been advising the nine minority shareholder councils on the sale and was part of the project team behind the deal.
He said: “The council is delighted the takeover has gone through and hope the medium-termsuccess of the merger will bring a much-needed increase in dividends in the future.”
Comments(3)
Rememberscarborough
says...
1:32pm Sat 2 Mar 13
BWFC71
says...
2:32pm Sat 2 Mar 13
1. The Fat morris will have no say in it. Although Bolton now has 3.2% of the shares in MAG it is only a minority shareholder compared to Manchester City Council who has 35.7% and an Australian Fund Venture, Industry Funds Management, which has 35%. And as a matter of fact MAG has to be operated as an arms-length company as, legally speaking, the councils are not allowed to operate public transport companies!!! Therefore it is completely autonymous of any of the 10 councils of Greater Manchester
2. The new prices were set late last year, long before MAG took over. Even if Ryanair pulled out that would leave more than plenty of airlines and slots to make some profit. And as a matter of fact the prices are actually in line with prices set at Manchester Airport and another 60% of airports that Ryanair fly from.
3. If MAG did go bankrupt, it would cause NO damage, whatsoever, financially speaking, to Bolton Council and we would not have to foot the bill primarily due to the fact that we have held teh shares for almost 40 years, now, and as uch they are paid for, and as the dividends are actually not budgeted for, due to the variance nature, then it wouldns't upset the annual budget - all that the Council would lose is teh added bonus of a dividend that it enjoys receiving annually at thsi moment in time.
4. MAG also own Manchester, Bournemouth and East Midlands, which are all profitable, therefore one bad apple wouldn't upset the cart!!! Also as MAG are also going to try and buy one of the airports in Chicago and expand is amazing service that can only compound the fact that it is a profitable and successful group.
boltonnut says...
1:08pm Sat 2 Mar 13