§ Mr. Robert McCartneyTo ask the Secretary of State for Northern Ireland on whose advice and by what criteria the price of Belfast international airport at Aldergrove was set when originally sold; and by what actual and percentage amount that price was bettered when the airport was subsequently sold. [1202]
§ Mr. MossThe Department of the Environment for Northern Ireland engaged the services of consultants for the privatisation process. Details of the appointment remain commercial in confidence. The valuation exercise formed part of that process. The criteria used to value the airport were those applicable to a transaction of this type.
The airport was sold by means of a trade sale in a competitive bidding situation which generated a considerable degree of price tension. The purchase price was £32.75 million and the Government withdrew a further £15.51 million in cash from the former company, giving a total return on the transaction of £47.9 million.
We understand that in August 1996 TBI plc acquired the shares in Belfast International Airport Holdings Ltd.—BIAHL—for £72.4 million. In addition, BIAHL paid a dividend of £4.5 million to shareholders. As part of the deal, TBI repaid £28 million of BIAHL's bank borrowings and transaction costs of £2 million. This resulted in a total purchase consideration of £106.9 million.
This figure represents an increase of £59 million on the amount received by Government from the sale of Northern Ireland Airports Ltd. In percentage terms, the increase is equivalent to 123 per cent.