Frankfurt (ots) - Fraport AG Frankfurt Airport Services Worldwide welcomes the Philippine government's compensation payment made to PIATCO for the expropriated terminal project at Manila airport. This payment is in keeping with the Philippine Supreme Court's decision of September 8, 2015, which was again reaffirmed in April of 2016. The Supreme Court stipulated that the government of the Philippines must pay compensation because it declared the concession contract with PIATCO null and void and, in 2004, 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 already made a partial payment to Fraport AG. Furthermore, Fraport AG 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 about 270 million US dollars.
From the compensation inflows, Fraport AG is required to repay the German federal government up to some EUR40 million, which the company received in fiscal year 2008 under Germany's GKA (Bundesgarantie für Kapitalanlagen im Ausland) foreign-investment guarantee program.
The rest of Fraport's compensation sum will primarily impact the Group EBITDA, EBIT, and EBT in the current fiscal year and - taking into account taxes to be paid - will have correspondingly positive impact on the Group result.
In due time, the Fraport AG executive board will recommend to the supervisory board whether and to what extent the gain should be reflected in the dividend payment to the shareholders of Fraport AG.
Original-Content von: Fraport AG, übermittelt durch news aktuell
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