What was changed
Under the EU and IMF bailout agreed in May 2011, Portugal had to privatize state assets. ANA – Aeroportos de Portugal, the state operator holding the 50-year concession for the country's 10 airports, was its last big privatization.
On December 27, 2012, the Council of Ministers chose France's Vinci, whose €3.08bn offer was the highest in a contest that also included Fraport, a Zurich–CCR consortium and Corporación América. Vinci took 95% of ANA, with 5% reserved for workers, and could not resell for five years.
The sale lifted Portugal's total privatization receipts to €6.4bn, above the target set in the rescue program. Vinci Airports said the acquisition made it a first-order international airport player, managing 23 airports in Portugal, France and Cambodia with more than 40 million passengers a year.
What it achieved
Vinci paid €3.08bn for 95% of ANA and a 50-year concession over 10 airports, lifting Portugal's privatization revenues to €6.4bn, above the bailout target.
Why it worked
Bailout terms forced Portugal to sell state assets.
Vinci's €3.08bn bid beat rivals, including Fraport.
ANA's 50-year, 10-airport concession anchored the value.
Privatization revenues reached €6.4bn, above target.
What can be applied
When a seller must sell, a premium bidder can still win on long concessions: Vinci paid top price for a 50-year regulated cash flow.
Aftermath
Vinci could not resell ANA for five years and built its airport division around it; Vinci called Lisbon's hub a 'major asset' for its position toward Brazil and lusophone Africa, and ANA became the core of a portfolio that grew to 23 airports.
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