Based upon the cash of $262 million US, the price target for ASUR has now been increased to $250 per share, for the full year following the completed acquisition of the Columbian Airport concessions. The concessions served a total of 15.6 million passengers in 2016.
http://finance.yahoo.com/news/asur-acquires-controlling-interest-entities-204700620.htm
This is a package of airport management contracts acquired from two separate entities. Some of the airports are very small and unlikely to ever be profitable, at least in the near term. However, there are two prizes worth mentioning. The Jose Maria Cordova International Airport is the second busiest facility in Columbia (6.9 million passengers in 2016) and is about to embark upon a significant expansion to accommodate the many low cost airlines now flying in/out of Columbia. The Simon Bolivar airport in Santa Marta (1.6 million passengers for 2016) is uniquely situated on a Caribbean Bay similar to the Mayan Riviera area of Mexico and is poised to become a regional, and potentially, an international tourist destination. Should this thesis prove out, the well managed Cancun International Airport model could readily be replicated for the benefit of shareholders and tourists alike.
EBITDA on the acquired airports could exceed $80 million in the first full year of operations. Assuming a 12X EV/EBITDA multiple adds $30 per share to the share value. As the purchase price is to be paid for with cash on hand and an estimated $200 million of low cost bank debt, this appears to be a blockbuster purchase for ASUR.
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