Williams: Alpha wasn’t looking to be bought

Gavin Lipsith

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Alpha CEO Peter Williams tells RavenFox.com that Alpha did not solicit the bid that Autogrill will officially make for the company later today

Alpha Airports Group was not looking for a buyer before Autogrill began buying shares in the company, Alpha CEO Peter Williams has told RavenFox.com. But he said that the Italian company’s takeover offer, due to be announced officially later today, was not a surprise.

Williams said that he believed that Autogrill had been in talks with Servair over buying its share in Alpha for several months, but the decision of another investor, Schroders Investment Management, forced it to show its hand early.

“When Schroders decided to sell its share, Autogrill realised that it could frustrate its own efforts to buy the company,” said Williams. “So they bought the stake and had to make an announcement to the stock markets as the holding was over 3%. Then they bought part of Servair’s stake and that’s when we began discussions with them.

“We weren’t looking to be bought. We’d been focusing on setting the strategy for Alpha’s business, and as a result of that there has been some interest. But the industry does need consolidation. There are a lot of players in the market at the moment.”

At £1.10 ($2.20) per share, Autogrill’s offer represents a premium of 53% on Alpha’s share price before the initial announcement, a value which made it impossible for Alpha’s board to reject. As Williams said: “While it is clear that we have a lot of growth opportunities, this is still a very good offer.”

But there are tactical considerations too. At least as far as retail is concerned, the groups fit together well. Autogrill has minimal business in the UK, and its subsidiary Aldeasa – which is split 50:50 between Autogrill and Altadis—has just won the contract at Mumbai International airport, complementing Alpha-Future’s new business at Delhi International airport. In North America there are also synergies, with Aldeasa’s new business at Vancouver International and Atlanta Hartsfield-Jackson airports and Alpha’s established operations at Orlando International and Sanford airports.

Williams said he assumed that Alpha and Aldeasa would work closely under Autogrill, although a strategy meeting between the Alpha and Autogrill management later today will bring a clearer picture. But in the flight catering segment, where Alpha is strong and Autogrill unrepresented, he could not say whether Autogrill would sell or retain Alpha’s business. “The jury is out,” he said. “I don’t think they have made a decision either way, but I’m sure we will find out more later.”