Almaty Airport awaits important changes

Tengrinews.kz — The Kazakhstan Infrastructure Fund C.V., which holds a 15 percent stake in Almaty Airport, is preparing to exit the project. Qazaqstan Investment Corporation has explained the reasoning behind this decision and provided details on the potential deal.

Background of the fund's entry into the project

QIC noted that the investment in the airport was made in 2021.

"The corporation is an investor in the Kazakhstan Infrastructure Fund C.V. private equity fund, through which a $30 million investment was directed into the Project in April 2021, representing a 15 percent equity stake," the joint-stock company stated in response to an inquiry.

The company confirmed that the fund is currently in the exit phase of the project.

Sale preparations underway

According to QIC, necessary corporate procedures and negotiations with potential buyers are currently in progress.

"KIF is currently in the process of exiting the Project. As part of this process, required corporate procedures are being conducted, and negotiations are underway with interested parties regarding potential options for the asset's sale," QIC explained.

The final decisions regarding the sale will not be made by the airport's shareholders or QIC.

"Under the constitutive documents, decisions regarding the exit from portfolio assets, as well as the determination of the structure, terms, and other commercial parameters of the transaction, fall under the exclusive competence of the Fund's independent management company, VPE Eurasia GP Limited," QIC noted.

Why the investor decided to exit the project

QIC emphasized that the sale of the stake is not related to any issues with the airport and is a standard part of the investment cycle.

"Exiting an investment is a standard stage in the investment cycle of private equity funds and involves the realization of an asset once its key objectives have been achieved," the corporation shared.

The fund's primary objectives that have been achieved include:

• The opening of new international passenger and VIP terminals in 2024;
• And the complete modernization of the airport's engineering infrastructure.

According to QIC's assessment, these changes have increased the air harbor's capacity, improved passenger service quality, and created more than a thousand new jobs.

"This has allowed for a significant increase in the capacity of Almaty International Airport, enhanced passenger service quality, and created over 1,000 new jobs," QIC explained.

Valuation and timeline of the deal

QIC declined to disclose the estimated value of the asset, the expected return on investment, or the anticipated timeframe for closing the deal.

The company explained that this information remains confidential until all procedures are completed.

They believe that premature disclosure of details could affect the negotiation process and the interests of the parties involved.