COPENHAGEN, Denmark, Oct. 17, 2002 (PRIMEZONE) -- Copenhagen Airports A/S has been selected as a strategic partner in connection with the flotation of the Chinese airport operator Hainan Meilan Airport Company Ltd. The Main Board of the Hong Kong Stock Exchange and has signed an agreement with Hainan Meilan Airport Company Ltd. to buy 20% of the company's shares at a price to be determined, but not to exceed HKD 515 million (DKK 500 million).Conditions precedent for closing the transaction include satisfactory due diligence, receipt of all relevant approvals and completion of the IPO.
Together with the share subscription, Hainan Meilan Airport Company Ltd. has signed a ten-year contract with Copenhagen Airport Development International A/S, a wholly owned subsidiary of Copenhagen Airports A/S, under which Copenhagen Airport Development International A/S will provide advisory services to Meilan Airport in relation to capacity utilization and expansion, airport operation and the development of commercial activities. Copenhagen Airports A/S has concluded a shareholders' agreement with a majority of the other shareholders of Hainan Meilan Airport Company Ltd., in relation to the management and regulation of the business of Hainan Meilan Airport Company Ltd.
Meilan Airport
Since it opened in 1999, Meilan Airport has grown from 2.2 million passengers to 5.1 million passengers in 2001. The airport is now the eighth largest in Mainland China.
The airport is located on the island of Hainan in China with a population of eight million. The island is located 50 kilometres off the mainland and some 700 kilometres from Hong Kong. Copenhagen Airports A/S sees a distinct potential for the island as a tourist destination, and in that connection, the company will be able to contribute to the future development of the airport by using its experience gained from the operation of the airport at Cancun, Mexico.
Effect on Copenhagen Airports A/S' profit The investment in Meilan Airport will be accounted for as an investment in an associated company, and it will consequently be recognised in the consolidated and parent company financial statements of Copenhagen Airports A/S according to the equity method. From 2003, the investment is expected to be accretive to CPH's earnings.