A consortium spearheaded by Groupe ADP has completed the acquisition of a controlling 51% stake in Airport International Group (AIG), operator of Queen Alia International Airport in Amman, Jordan.
Group ADP's interests in the consortium are represented by its international investment arm and 100%-owned subsidiary, ADP International (ADPI).
The consortium also includes Meridiam and ASMA Capital Partners BSC, actinbg in its capacity as investment manager for IDB Infrastructure Fund II, and Edgo.
Groupe ADP's investment in the transaction is around USD 265 million.
Groupe ADP, through ADPI, already held a 9.5% stake in AIG, which held the concession to operate and develop Queen Alia International Airport since 2007.
Since 2007, traffic has been growing in average by 6.5% per year and a new terminal was built in 2013, then extended in autumn 2016, raising the airport capacity to 12 million passengers.
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According to Group ADP, the deal to take over AIG, will give it furtther opportunities to "spread its know-how, expertise and services" at Queen Alia.
The objectives, it says, are to reinforce the air network departing from Amman, improve the quality of service offered to passengers and the performance of aviation and retail activities, and ensure a sustainable and socially responsible development during the remaining duration of the concession, which runs until 2032.
Groupe ADP, Augustin de Romanet, said: “This new step is strategic for Groupe ADP as it serves to strengthen our ties with Jordan, and I extend my thanks to the Government of Jordan for its confidence and trust in us.
"Queen Alia International Airport is one of the best airports in the Middle East, and Groupe ADP, having already been a shareholder of Airport International Group through ADP International, has contributed to the superb performance and growth of the airport over the last ten years.
"By acquiring control of Airport International Group, Groupe ADP will be able to fully spread its limitless know-how, expertise and offerings. Alongside our co-shareholders, Meridiam Eastern Europe Investments and Edgo Investment Holdings Ltd, we aim to reinforce the routes network, departing from Amman, and improve the quality of service for passengers and the performance of aeronautical and retail activities, for the benefit of all stakeholders.
"Lastly, a big part of our goal is to ensure sustainable and socially responsible operations and the continuous development of the infrastructure for the remaining duration of the concession.”
While AIG CEO, Kjeld Binger, commented: “In recent years, Jordan has been in the global spotlight, evoking the interest of foreign investors with its investment-friendly environment and policies, which in turn, contributes to the Kingdom’s economic growth.
"We are proud to be working with Groupe ADP, as they possess a repertoire of internationally acclaimed airports and worldwide experience in airport management.
"This step marks a pivotal moment in our journey with Queen Alia International Airport, as we aspire to build on the substantial success we have achieved thus far, and reach unprecedented levels of excellence and innovation in the years to come.”
A reference airport in the Middle East
Queen Alia International Airport handles 98% of Jordanian traffic. It is the base and hub of Royal Jordanian Airlines and the gateway for the main touristic spots of the country, especially Petra, the Dead Sea and Wadi Rum desert.
It welcomed 7.9 million passengers in 2017, an increase of 6.8% compared to 2016 and 1.8 million passengers between January and March 2018, an increase of 8.5% compared to the same period in 2018.
The gateway was recently ranked the second best airport in the Middle East in ACI's Airport Service Quality (ASQ) customer satisfaction awards for 2017.