MELBOURNE, Aug 6 (Reuters Basis Point) - Final bids for the
up to A$1 billion ($917 million) privatisation of Cairns
Airport Pty Ltd and McKay Airport Pty Ltd in Australia's
northern state of Queensland are due in October, sources said.
Shortlisted bidders for the companies, which are being sold
together, include Hastings Funds Management Ltd and a Macquarie
Group Ltd (MQG.AX)-led consortium, according to the sources.
Hastings' Australian Infrastructure Fund already owns
stakes in airports in the Gold Coast, Melbourne, Mount Isa,
Northern Territory, Perth and Townsville.
It is understood that more names could be added to the
shortlist, with some companies still considering making offers.
The government is expected to release the information
memorandum on the sale in the next two weeks.
The two assets are expected to fetch a total of between
A$800 million and $1 billion.
As they are regional airports and not the main gateway into
Queensland, gearing is expected to be a conservative 50
percent, said a banking source.
Potential lenders are in negotiations with bidders about
underwriting debt for the acquisition.
The Queensland state government is separately selling a
12.4 percent stake in Brisbane Airport Corp Pty Ltd that it
holds via Brisbane Corporation.
Other shareholders in Brisbane Airport, including Amsterdam
Airport Schiphol and Brisbane City have pre-emptive rights over
the sale.
($1=1.09 Australian Dollar)
(Reporting by Sharon Klyne)
