Newcastle Airport may sell half its stake
Half of Newcastle Airport Authority Ltd may be sold next year. Newcastle City Council and Port Stephens City Council may invite IFM Investors Ltd and superannuation funds to bid on 50% of the airport stake. This was according to a report published by Business Spectator.
Newcastle Airport wants to become an international and regional airport for a portion of New South Wales. The airport may start accepting bids for half its stake may begin on November 2014. The sale process could be facilitated by accountancy firm Ernst & Young, said the report.
Since the Department of Defense uses the Newcastle Airport, it does not want non-government firms to have a controlling stake in the asset. Therefore, investors are limited to a maximum of 50% stake, the report explained.
The airport received a USD11.1 million pledge from the NSW government for expansion of its terminals. Newcastle Airport is looking to get more flights from other countries including China, Business Spectator reported.