Grupo Aeroportuario del Pacifico, S.A.B. de C.V. (NYSE: PAC; BMV: GAP) ("the Company" or "GAP") announced today the closing of the transaction with the Government of Jamaica for the operation, modernization and expansion of the Norman Manley International Airport ("KIN"), located in the city of Kingston, Jamaica, by the signing of a 25-year Concession Contract, with a possible 5-year extension.
The transaction concluded following a competitive public bidding process among various bidders, as per GAP's market announcement this past September 12, 2018.
Per the terms of the contract, GAP will pay US$ 7.1 million in consideration during the next 12 months, and will take control of the operation and management of KIN in October 2019. Once the operation begins, the Company will pay to the authorities a concession fee of 62% over the total amount of aeronautical and commercial revenues.
In accordance with the concession agreement, certain works must be completed during the first 36 months from the date of taking over operations; these projects are valued at approximately US$ 60.0 million. This amount is expected to be recovered through the tariffs. In accordance with GAP's debt policies, the total amount of the investments will be financed by bank loans.
During 2017, KIN served a total number of 1.6 million passengers, representing 27% of the country's total passenger traffic, while the Montego Bay International Airport, of which GAP is a majority shareholder, served the remaining 73%.
The airport is estimated to contribute approximately 3.5% growth in passenger traffic of GAP's consolidated results, an estimated increase in total revenues of 6.0% and an EBITDA growth close to 1.5%.
The aforementioned estimates are based on expectations at the time of the transaction, and could change in the future depending on various factors, such as: airline activity, tariffs regulations, domestic and international economic conditions, among others.
The result of this bidding process is a result of GAP's vision and firm commitment to diversify its portfolio of airports, and represents a strategic decision to raise GAP's positioning in Jamaica and strengthen development and growth of both international airports.
For more information please visit www.aeropuertosgap.com.mx or contact:
In Mexico
Saúl Villarreal García, Chief Financial Officer
Alejandra Soto, IR and Financial Planning
Grupo Aeroportuario del Pacífico, S.A.B. de C.V.
Tel: 52 (33) 38801100 ext 20151
svillarreal@aeropuertosgap.com.mx
In the U.S.
Maria Barona
i-advize Corporate Communication
Tel: 212 406 3691 / 94
Company Description:
Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) operates 12 airports throughout Mexico's Pacific region, including the major cities of Guadalajara and Tijuana, the four tourist destinations of Puerto Vallarta, Los Cabos, La Paz and Manzanillo, and six other mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali and Los Mochis. In February 2006, GAP's shares were listed on the New York Stock Exchange under the ticker symbol "PAC" and on the Mexican Stock Exchange under the ticker symbol "GAP." In April 2015 GAP acquired 100% of Desarrollo de Concesiones Aeroportuarias, S.L., which owns a majority stake of MBJ Airports Limited, a company operating the Sangster International Airport in Montego Bay, Jamaica.
This press release may contain forward-looking statements. These statements are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates," "believes," "estimates," "expects," "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial conditions, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
In accordance with Section 806 of the Sarbanes-Oxley Act of 2002 and article 42 of the "Ley del Mercado de Valores," GAP has implemented a "whistleblower" program, which allows complainants to anonymously and confidentially report suspected activities that may involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party that is in charge of collecting these complaints, is 01-800-563-0047. The web site is http://www.lineadedenuncia.com/gap. GAP's Audit Committee will be notified of all complaints for immediate investigation.
SOURCE: Grupo Aeroportuario del Pacífico, S.A.B. de C.V.
View source version on accesswire.com:
https://www.accesswire.com/524292/Grupo-Aeroportuario-del-Pacifico-Announces-Signing-of-Concession-Contract-to-Operate-Kingston-Airport-in-Jamaica
