Aer Rianta is understood to be on a shortlist of two or three consortiums to buy a string of Greek duty-free shops. The deal, which would involve Aer Rianta investing in the region of £20 million (€25.4 million) in the Hellenic Duty Free group, could be concluded in September.
Hellenic Duty Free is owned by the Greek government and the Irish airports operator would take a stake of around 5 per cent in it. A major attraction of the deal would be a management contract worth £50 million per annum.
Hellenic Duty Free has extensive duty-free operations at the Greek airports and on the Greek islands. Greece is also bordered on three sides by countries unaffected by the abolition of duty free, according to Aer Rianta chairman Mr Noel Hanlon.
Aer Rianta is part of a consortium which includes a local Greek group. It is understood that the duty-free shops, while having major potential, need substantial upgrading and investment.
Mr Hanlon said the company was also looking at a number of other substantial investments. It has been offered a 4.5 per cent stake valued at £6 million in Birmingham Airport, which it is considering. Aer Rianta currently owns 40 per cent of the airport.
Meanwhile, Mr Hanlon said that the company would issue a Eurobond to raise £100£150 million for investment. Aer Rianta plans to invest £500 million over the next five years.
The Government will shortly receive a consultant's report on the future of Aer Rianta, commissioned by Public Enterprise Minister, Ms O'Rourke.
It follows a similar report commissioned by Aer Rianta which recommended flotation as a means of raising money.
Mr Hanlon said he personally favoured floating 49 per cent of the company, with the State retaining a controlling interest.
What was done with the monies raised was up to the Government, he added, but flotation would make it easier to go to the market for money.
He said the company was worth up to £1 billion and should be of interest to investors.
Airports are now an attractive investment, he contended, and are monopolies by their nature.
He welcomed Ms O'Rourke's recent announcement of the remit of the new airports regulator which includes setting landing charges. This was a vital precursor to a flotation, he said.
