EXCLUSIVE: Firm eyes Riyadh airport stake

31 July 2017

Saudi Arabia plans to privatise all its airports by end of the year

Turkey’s TAV Airport Holding says it plans to bid for the privatisation of King Khalid International airport in Saudi Arabia’s capital Riyadh.

The client, Saudi Civil Aviation Holding, however, has yet to confirm if an equity sale is the preferred method for the sale of the airport’s minority stake.

It is understood other options that the client can consider include an initial public offering (IPO) and trade sale.

US-based Goldman Sachs was recently appointed to advise Saudi Civil Aviation Holding in the kingdom’s first airport stake sale.

TAV and its local partner Al-Rajhi Holding have a 50:50 shareholding in Tibah Airports, after they purchased Saudi Oger’s 33.3 per cent shareholding in the firm that operates and manages the Prince Mohammed bin Abdulaziz International in Medina.

The Medina airport is commonly referred to as the first airport public private partnership (PPP) in the kingdom although the Hajj Terminal at King Abdulaziz International airport in Jeddah was also procured on a 20-year build, operate, transfer (BOT) scheme.

Earlier this year, the TAV/Al-Rajhi team won the build, transfer, operate (BTO) agreements for the airports in Yanbu, Qassim and Hail.

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