Bidders shortlisted for Sydney airport sale

The sale of Sydney Airport could raise $2 billion for the Australian government

In this story: Banks, construction giant form consortium Limits on foreign ownership RELATED SITES

By CNN's Geoff Hiscock, Asia business editor

SYDNEY, Australia (CNN) -- The Australian government has compiled a shortlist of bidders in the $2 billion sale of Australia's main international airport in Sydney.

The Australian government hopes to use the proceeds from the sale of the airport later this year to cut national debt.

Expressions of interest for the airport closed on May 14 and were evaluated by the government's sale team over the past two weeks.

Minister for Finance and Administration John Fahey said on Friday the government was pleased with the level of interest in the sale process.

A spokesman for the minister declined to name those on the shortlist. The next stage of the process is to invite indicative bids.

Banks, construction giant form consortium

One group to confirm it is on the shortlist is a consortium made up of the Commonwealth Bank of Australia, the investment bank Macquarie Bank and the German construction giant Hochtief, the controlling shareholder in the Australian contractor Leighton Holdings.

Another consortium believed to be on the shortlist groups the Australian insurance and funds manager AMP and Westpac Banking Corp with Deutsche Asset Management and Hong Kong-based Cheung Kong Infrastructure (CKI).

CKI, controlled by Hong Kong billionaire Li Ka-shing's flagship, Cheung Kong (Holdings), already has investments in Australia in the power industry.

The third group is said to comprise Australia's biggest bank, National Australia Bank, ABN AMRO and Copenhagen Airports. NAB declined to comment.

Limits on foreign ownership

While the Australian government is keen to sell Sydney, there are limits on the process.

Foreign ownership is restricted to 49 percent and airlines are able to buy only 5 percent to prevent carriers controlling the airport.

This caused one potential bidder, Singapore's Civil Aviation Authority (CAAS) to drop out because it is owned by the Singapore government, which in turn owns Singapore Airlines.

Sydney airport is Australia's busiest international gateway and handles 8 million visitors a year. Melbourne, Brisbane and Perth airports have already been sold to private investors for a total of about $1.7 billion.

Sydney Airports Corporation

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