Financier Mr Dermot Desmond's stake in the British airports group TBI has been valued at more than €37 million, following a takeover bid for the company.
The board of TBI, which owns Belfast, Cardiff and Luton airports, is to recommend unanimously to shareholders a $1 billion (€760 million) offer for the company from Spanish road toll group Abertis.
Mr Desmond holds a 5.08 per cent stake. He has been building up his stake in the company over recent years. He originally held a 3.7 per cent stake.
The price paid for this stake and a later purchase of shares was not disclosed at the time, but market sources believe he paid €28.5 million in total for his shareholding. This would leave Mr Desmond, who already owns London City Airport, in line for a gain of roughly €8.5 million.
The deal announced yesterday by the boards of the two companies would give Barcelona-based Abertis control of Luton Airport, north of London, home to low-cost carrier easyJet, and a strategic foothold in the profitable airport operating business.
Abertis said its 90 per cent-owned Airport Concessions and Development Ltd (ACDL) was offering 92.5 pence per share for TBI, which raised its stake in Luton to 100 per cent last month.State-owned Spanish airports agency Aena owns the remaining 10 per cent of ACDL.
The agreed offer, which follows two failed takeover bids for TBI in the last three years, was well-priced, according to analysts who expect Abertis to make further airport investments.
"The expansion of our airport business is a natural step for us. Airport businesses have attractive characteristics including strong cash flows and stable margins," Abertis chief financial officer Mr Miguel Abeniacar said.
French construction firm Vinci dropped a bid for TBI in September 2001, following the terrorist attacks on New York and Washington DC.
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