Shares of Corporacion America Airports (NYSE: CAAP) gained more than 50% on Tuesday morning after the airport operator announced a 10-year extension to operate airports in Argentina. Airports in Argentina represent a significant portion of CAAP's overall portfolio, and investors are breathing a sigh of relief in sending the shares higher. With travel demand down, so too is airport revenue, leading airport owners and operators to rethink spending plans.
Corporación América Airports S.A. (NYSE: CAAP), ("CAAP" or the "Company"), the largest private sector airport concession operator in the world by number of airports, announced today that at a signing ceremony that took place at the office of the President of the Republic of Argentina Dr. Alberto Fernandez, Aeropuertos Argentina 2000 S.A. ("AA2000") represented by its Chairman Martín Eurnekian and the Organismo Regulador del Sistema Nacional de Aeropuertos ("ORSNA") represented by its Chairman Carlos Pedro Lugones Aignasse signed an agreement to extend the AA2000 concession (the "Concession Agreement Extension") for a ten-year period from 2028 to 2038, as provided for under the existing concession agreement. This extension is part of an agreement entered by AA2000 and ORSNA with an aim to mitigate the impact of COVID19 in its operations and further includes the commitment by AA2000 of incremental capital expenditures of approximately US$500 million to be undertaken between 2022 and 2027 for expansion projects. The Concession Agreement Extension is subject to the issuance of a Presidential Decree as is customary in processes like this one.
We at Insider Monkey have gone over 817 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article, we look at what those funds think of Corporacion America Airports SA (NYSE:CAAP) based on […]