Hazoury Group sells Aerodom

SANTO DOMINGO.- After maintaining total silence for months, the private capital firm of Advent International has announced that it has acquired 100% of the shares of Aerodom (Aeropuertos Dominicanos Siglo XXI) from the Hazoury Group, Vancouver Airport Services and other local investors.

The negotiations for the sale of the Aerodom shares have been on-going for more than two years, but things started to come together about two months ago, and the sale was finalized over the weekend.

Neither Advent nor the Hazoury Group revealed the amount of the transaction, but Latin Finance, last 29 August, reported that the negotiations with Aerodom were being handled by the Mexican branch of Advent International for an estimated amount of US$350 million.

Luis Solórzano, the Advent International director in Mexico, told reporters that Aerodom is the market leader in one of the Caribbean destinations with the highest activity, not only in numbers but in growth of tourist, local and business arrivals.

He said that the investment "permits us to take advantage of our experience in the airport sector to create value for Aerodom. For example, we see a lot of potential to increase commercial income through duty free sales, and the sale of food and beverages by means of the optimization of the terminal spaces as we have done in other airports."

Reporters were told that the existing administration will continue to handle the company, and Advent said that they would send some of their executives to become part of the Dominican operations.

Last November, the Diario Libre reported that the Hazoury Group was accepting feelers for the sale of its shares in Aerodom because of the dim forecast for the airport sector.

The article also pointed out that the national and international dealings by the group were the principal reasons for the Hazourys to sell off their shares of Aerodom.

One day later, Aerodom acknowledged that it had contacted different international investors, but they said that the sale had not yet taken place.

In 1999 Aerodom managed to obtain the approval of Congress for a 25 year concession for handling Las Americas, and La Isabela airports in Santo Domingo, Gregorio Luperon in Puerto Plata, Arroyo Barril and Catay in Samaná, and María Montez in Barahona. Later, in 2002, an additional 5 years was tacked on to the concession.

Nevertheless, what was at first considered to be a good deal, changed over the last few years because of a decline in the world aeronautical industry.

Diario Libre