ARGENTINA. InterBaires, together with new shareholder London Supply Capital, met suppliers at the Orlando show on Sunday to update them on the latest developments regarding InterBaires’ future.
In a complex deal that finally closed on Friday night, it was confirmed that London Supply Capital, a financial arm of one of South America’s leading duty free retailers and airport companies, would become one of three shareholders in InterBaires, joining Deutsche Bank and the state (which holds 20%). Both parties declined to comment on the final price paid or the exact shareholding. But they pointed out that management control will remain in the hands of Deutsche Bank.
Speaking to The Moodie Report just before a meeting with suppliers on Sunday, InterBaires ceo Enrique Urioste and London Supply duty-free division director Francisco Heredia emphasised that London Supply’s investment did not mean any form of merger or takeover.
Both companies will remain independent of one another with management and purchasing autonomy. “This is not a merger of any sort,” said Urioste, “it’s a strategic investment from Teddy Taratuty [president of London Supply].”
He added: “Teddy Taratuty is a key player. He’s a well-respected and well-known Argentinean businessman. He will contribute his expertise as a businessman but also as an airport landlord.”
London Supply’s investment is based on InterBaires’ current operations and a full recognition of the uncertainty over its retail contract in Argentina, said Heredia. InterBaires is currently embroiled in a bitter dispute with Buenos Aires-based airport authority Aeropuertos Argentina 2000 (AA2000) over the duration of its contract. The retailer claims that the contract is valid till 2027; AA2000 has rejected the legitimacy of the contract extension and says the original expiry date of 2009 applies.
Heredia said: “The deal we have done is based on how the situation is today. But we look forward to a win-win situation for both parties [InterBaires and AA2000].”
Urioste said that a number of claims are currently being pursued against AA2000. The two key matters are whether the contract extension from 2009 to 2027 is valid or not; and a challenge to the mandate of the judge who ordered InterBaires to vacate most of its space at Buenos Aires Ezeiza airport.
But Urioste was bullish about the future, saying that the involvement of a committed and respected new shareholder with considerable experience in the airport business would help greatly in the future. “From InterBaires and Deutsche Bank’s perspective, having a partner who knows the business and who has a landlord’s perspective can help us resolve the situation [with AA2000],” Urioste said. “Teddy Taratuty will add value and bring a lot of personal commitment.
“It’s a new starting point for us. From here, only good things can happen.”
London Supply is a powerful force in Argentina and Uruguay. It has interests in several airports: Punta del Este; Ushuaia; El Calafate; Trelew; and Valle del Conlara. And it has duty free operations at Iguazu, Punta del Este, Ushuaia, Rio Grande, Aep de Ushuaia and Aep de Rio Grande. Other business includes free zone retailing operations at Puerto Iguazu, ship’s supply and distribution.
