Skanska nets windfall from Chile highway sale

Swedish construction and engineering group Skanska said Wednesday it would make a €556 million ($730 million) gain from the sale of a 50 percent share in a company that owns a Chilean highway concession.

Skanska nets windfall from Chile highway sale

Skanska said the buyer, Canada’s Alberta Investment Management Corporation (AIMCo), was acquiring the Skanska-owned Swedish holding companies that own the 50 percent stake in Autopista Central in Santiago, which is run as a public private partnership (PPP).

“The gain on sale after tax amounts to approximately 5.0 billion kronor ($730 million) and corresponds to a gain of 12 Swedish kronor per share in Skanska,” the company said in a statement.

Chief executive Johan Karlström called the investment in Autopista Central “Skanska’s most successful ever.”

“This deal gives a very good result for Skanska and our shareholders,” he said.

The announcement sent Skanska’s shares up 4.0 percent in early trading on the Stockholm Stock Exchange. Shortly after 10am, the company’s shares were up 3.44 percent to 135.5 kronor in a flat market.

Analyst Bengt Claesson at SEB called the announcement “good news,” saying the expected deal had come earlier than planned.

“It is positive that they announce it already now as the announcement was not expected until next year,” he told Dow Jones Newswires.

Skanska said the deal was conditional to approval from the bond guarantor and amendments to the financing agreements.

It said the gain would be recognised at the earliest in the second quarter in 2011.

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Swedish firm wins huge New York airport bid

A consortium led by Swedish construction company Skanska has been picked for a $3.6 billion (30.5 billion kronor) project to modernize New York's LaGuardia Airport, regional transport officials have announced.

Swedish firm wins huge New York airport bid
Travellers at New York's LaGuardia Airport in January 2015. Photo: TT

The contract is the largest in Skanska's history and follows the group also winning the contract to build the Metlife Stadium, where the American football teams New York Jets and New York Giants play.

The Skanska team, called LaGuardia Gateway Partners, was tapped by the Port Authority of New York and New Jersey to demolish the existing central LaGuardia terminal and build and maintain a replacement.

They beat out a competing bid by a team that included major rivals Aeroports de Paris, Goldman Sachs and the architecture firm Kohn Pedersen Fox.

Other members of the consortium are Walsh Construction, Vantage Airport Group, which manages nine airports around the world, Meridiam, Parsons Brinckerhoff, and HOK, the global architecture group.

Located in the borough of Queens, LaGuardia is one of three major airports serving the New York City region. Port Authority officials described the upgrade as necessary for New York to compete effectively with Tokyo and other global centers.

They said partners in the Skanska consortium have worked on more than 350 aviation and transport projects, including the John F. Kennedy Airport in New York and at international airports in Boston and Los Angeles.

Transport officials said the upgraded airport would replace a facility that currently suffers from overcrowding. Construction is scheduled to begin in the first quarter of 2016.

Several airlines fly between Sweden and New York, with budget carrier Norwegian launching a no-frills service in 2013.