Abu Dhabi's ADQ among potential suitors for Italy's Catania airport, sources say

By Federico Maccioni and Elvira Pollina

DUBAI/MILAN (Reuters) -Abu Dhabi's sovereign wealth fund ADQ has emerged as a potential suitor in a sale of Catania airport's operator in Sicily, two sources familiar with the matter said, adding that the fund has expressed preliminary interest in the asset.

The sale process has not formally begun, but interest in the asset is building ahead of a potential launch, the sources said, speaking on condition of anonymity.

Catania is Sicily's main airport and Italy's fifth busiest airport by passenger traffic. 

It is operated by SAC, a company owned by local authorities and chambers of commerce, under a concession that runs until 2049. SAC also manages the smaller Comiso airport, located in southern Sicily.

Under the draft terms of the sale, between 51% and 66% of SAC would be sold, one of the people said. 

LONG-RUNNING PRIVATISATION PROCESS

The asset could be worth between 500 million euros and 600 million euros ($580.60 million - $696.72 million), the people said.

The valuation, based on sector multiples and expected core earnings of over 30 million euros this year, reflects its concession-based model, which typically trades below freehold airport assets, according to one of the people.

Italy's civil aviation authority ENAC is currently reviewing the draft tender for the sale, the sources said, with one of them adding a green light is expected at the end of October, which would pave the way for the formal start of the process.

ADQ declined to comment. SAC and ENAC did not immediately respond to a request for comment.

In a statement to Reuters, Antonino Belcuore, special commissioner of the chamber of commerce of South and East Sicily, which holds a 60.6% stake in SAC, welcomed ADQ's interest, saying it showed the importance of the asset and that the path to privatisation is "the right one to continue pursuing."

The privatisation of the Catania airport has been on the cards since 2022, when Italian investment bank Mediobanca was appointed as adviser to guide the sale process. 

Italian Prime Minister Giorgia Meloni has also pursued stronger ties with Gulf countries since taking office in 2022. 

This year, Rome sealed a strategic partnership with the United Arab Emirates, as part of which the UAE committed to investing $40 billion in Italy across key sectors.

    ADQ had total assets of $251 billion as of the end of last year, including in energy and transport and logistics, such as Abu Dhabi Airports and state carrier Etihad Airways.

($1 = 0.8612 euros)

(Reporting by Elvira Pollina in Milan and Federico Maccioni in Dubai, additional reporting by Angelo Amante in Rome. Editing by Anousha Sakoui and Jane Merriman)