Fraport AG Frankfurt Airport Services Worldwide has received the compensation payment made to PIATCO by the Philippine government for the expropriated terminal project at Manila airport, the company said.
The company said the payment is in keeping with the Philippine Supreme Court´s decision that stipulated the government of the Philippines must pay compensation because it declared the concession contract with PIATCO null and void. In 2004, the country expropriated PIATCO´s newly built airport terminal in the capital city of Manila.
Following the decision of the Philippine Supreme Court, PIATCO has received compensation payments for the expropriated terminal project in Manila. Based on this compensation, PIATCO has made a partial payment to Fraport AG. Fraport AG said it intends to sell its shareholdings in companies in the Philippines and will no longer purse claims in connection with the expropriation of the terminal project at Manila airport.
Fraport AG´s share of the total transaction amounts to USD270 million.
From the compensation inflows, Fraport AG is required to repay the German federal government up to EUR40 million, which the company received in fiscal year 2008 under Germany´s GKA (Bundesgarantie fÃ¼r Kapitalanlagen im Ausland) foreign-investment guarantee program.
Fraport AG is a global airport business that offers integrated airport management services with subsidiaries and investments on three continents. The Fraport Group generated sales of EUR2.6 in 2015. In 2015, 111 million passengers used airports around the world in which Fraport has more than a 50 percent stake.