Corporación América Airports S.A., a leading global airport operator, has announced that its fully owned subsidiary, Inframérica Concessionária do Aeroporto de São Gonçalo do Amarante S.A. (ICASGA), has received a gross indemnification payment of R$610.4 million. This payment is associated with the amicable termination of its concession agreement for the Natal airport in Brazil, following a meticulous process adhering to Brazilian legal and regulatory requirements.
The indemnification amount, determined by authorities, primarily considers non-amortized capital expenditure investments. ICASGA initiated the termination process in March 2020, and in November 2020, executed an irrevocable amendment. According to this amendment, an indemnification payment was due upon the execution of a new concession with a different operator.
On January 18, 2023, the government-related entity, “Tribunal de Contas da União” (TCU), provided clearance for the Natal airport’s tender process, which occurred on May 19, 2023. Key financial impacts include a gross indemnification payment of R$610.4 million and a positive impact on Adjusted EBITDA (to be recorded in 4Q2023) of R$610.6 million.
The Adjusted EBITDA impact is calculated as the gross indemnification payment, minus direct taxes and the “disposal of the concession assets,” plus the “reversal of the impairment loss” previously recorded. The gross indemnification payment is subject to regulatory deductions, estimated at R$89 million, as well as taxes, termination costs, and expenses.
The Natal airport, transferred to the private sector in 2011, was the first greenfield federal airport built by the private sector in Brazil. The Company anticipates initiating the transition period with the new operator by mid-January, with the concession termination expected to conclude by early March. As the Natal Airport exits the Company’s portfolio, historical passenger and cargo information will be reported on a pro forma basis.
Corporación América Airports looks forward to continuing its strategic focus on airport operations globally.
About Corporación América Airports
Corporación América Airports acquires, develops, and operates airport concessions. The Company is one of the leading private airport operators in the world, currently operating 53 airports in 6 countries across Latin America and Europe (Argentina, Brazil, Uruguay, Ecuador, Armenia and Italy). In 2022, Corporación América Airports served 65.6 million passengers, 83.7% above the 35.7 million passengers served in 2021 and 22.1% below the 84.2 million served in 2019. The Company is listed on the New York Stock Exchange where it trades under the ticker “CAAP”. For more information, visit http://investors.corporacionamericaairports.com