Spotlight: The future of Brazil’s biggest airport

With many airport concessions expected to be put up for auction in Brazil, the country's largest airport, Guarulhos in São Paulo state (pictured), holds much potential for international players.

In response to recent media speculation, infrastructure group Invepar said it hired an unnamed adviser to study options for the sale of its Guarulhos stake. But the company cautioned it has “no specific mandate for the sale of the stake in the airport." Rather, it would evaluate "its strategic options within the scope of business management.”

The concession for Brazil's biggest airport remains valid until 2032 and belongs to GRU Airport, which is 51%-owned by GRUPar (80% Invepar, 20% South Africa-ACSA) and 49%-owned by federal airport authority Infraero.

Invepar's evaluation of a divestment adds to federal plans to sell the Infraero stake.

If Invepar and Infraero sold their stakes, international players could become more relevant in the local airport sector, focusing on just one asset.

Guarulhos handles about 14% of the country's passenger air traffic.

INVEPAR ISSUES

Along with Guarulhos airport, Invepar holds the concession for the Rio de Janeiro metro system and operates eight highway concessions, managing 2,337km of toll roads.

It is equally controlled by the country’s largest pension funds Previ, Funcef and Petros, and a fund called Yosemite, which comprises creditors of construction conglomerate OAS. Yosemite obtained the stake as part of OAS's debt restructuring program.

Invepar’s high debt has fueled speculations about asset sales. In the third quarter of 2019, the most recent figure available, its debt totaled 9bn reais (US$2.14bn), up from 8.15bn reais a year ago.

Net loss in the third quarter was 76.6mn reais, compared to an 81.3mn-real loss a year earlier.

Meanwhile, the airport segment is very attractive for European operators.

Last year, Spanish airport group AENA, Switzerland's  Zurich Airport and Germany’s Fraport bid in an auction for concessions of 12 regional airports.