Nov 5, 2013

New Kansai International Airport Co. acquires 67.7% stake in OAT


NKIAC's Pres. Keiichi Ando (right) and OAT's Pres. Hitoshi Okamoto

The New Kansai International Airport Co. (NKIAC) acquired approximately 67.7% of the issued shares of Osaka International Airport Terminal Co. (OAT) on October 31. The company will continue to get hold of the remaining shares of the latter in stages going forward, expecting to secure all shares in OAT within this year at the earliest or within next fiscal year at the latest. The shares were bought at the per-unit price of Y11,593, aggregating to about Y18.8 billion. NKIAC aims to boost the functions at the Kansai International Airport and Osaka International Airport (Itami) by integrating the control and operation of the airport and commercial businesses in both facilities. It is also preparing for concessions that are projected to take place in fiscal 2014 in a bid to boost corporate value. Further, it is considering reinforcing collaboration and efficiency at both airports in the future by realigning the group companies of OAT, including CKTS which handles the storage business at the New Kansai International Airport.

Keiichi Ando, president of NKIAC, and Hitoshi Okamoto, president of OAT, held a press briefing at the Itami Airport on November 1, where they disclosed the above development.

Of the 2.4 million issued shares of OAT, NKIC purchased the 50% shares owned by Osaka Pref., Osaka City, Hyogo Pref. and Kobe City, and the 17.7% combined shares of 13 private enterprises. The remaining 32.3% shares are owned by private companies and NKIAC aims to acquire these in full in the future. The total acquisition price of the entire lot of shares in OAT is expected to reach around Y27.8 billion, to be covered by cash reserves.

Ando stressed the meaning of the transformation of OAT into a subsidiary of NKIAC, saying that, "Corporate value goes up with just the integration of the operation of the airport and commercial businesses at both airports. We think of the convenience, comfort and safety of airline companies and users as aspects integrated with our Group's profitability."

Thus far, NKIAC and OAT have been engaged in schemes to share purchases and restructure store operation, as well as upgrade the terminal at Itami Airport. In the future, they plan to study the renovation plan for the entire Itami Airport, hoping to finish the construction works before the Tokyo Olympics in 2020.

OAT will become a consolidated unit of NKIAC starting the latter half of fiscal 2013 ending March 2014. Its executive officers and organizational system will be retained, but Ando acknowledged that it would be necessary to restructure and enhance the efficiency of the 10 group companies of OAT.

It is projected that the realignment of OAT will include, among others, CKTS and the Kansai Air Cargo Center (KACC), which takes care of its handling business. With regard to cargoes, synergistic effects will be boosted by linking the domestic network of Itami Airport and the international network of Kansai Airport. Ando claimed that, "There are various possibilities when it comes to cargoes. The scope of our business will probably grow by a wide margin."

OAT was established in July 1966 by the economic quarters of Osaka City, Hyogo Pref., Kobe City and Kansai region. It is engaged in the operation/management of the passenger and cargo terminals at the Osaka International Airport, as well as the sale of goods, among other businesses.

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