Agenda item

Durham Tees Valley Airport

Report of the Managing Director


(URGENT ITEM) With the prior approval of the Leader to the matter being treated as urgent to enable a decision to be made at the earliest possible date, the Cabinet Member with the Efficiency and Resources Portfolio introduced the report of the Managing Director (previously circulated) requesting that consideration be given to waiving the pre-emption rights the Council has, as a shareholder in Durham Tees Valley Airport Limited, in order to facilitate the transfer of shared controlled by Peel Holdings Limited to a company established by the Tees Valley Combined Authority (TVCA), and to consider maintaining its existing minority shareholder protections under the current shareholders agreement, with some minor modifications and clarifications.


The submitted report stated that on 24 January 2019 the TVCA had agreed to acquire the shareholding of Peel Holdings Limited in Durham Tees Valley Airport Limited; Peel Holdings Limited had the majority shareholding (89.09 per cent) in the Airport; the Council and the other minority shareholders, namely the four other Tees Valley Councils and Durham County Council, had pre-emption rights to buy any shares being disposed of by Peel Holdings Limited before they were offered for sale to another person or entity; none of the minority shareholders intended to exercise their pre-emption rights but they were supportive of the proposals; and that the minority shareholders had to give a waiver to indicate that they did not intend to exercise their pre-emption rights.


RESOLVED – (a)  That consent be given to waive the Council’s rights of first refusal (pre-emption rights) relating to the proposed transfer of the shares by Peel Holdings Limited.


(b)  That the continuance of the shareholder protections for the minority shareholders, be agreed, subject to the modifications as set out in the submitted report.


(c)  That the Managing Director be authorised to implement the decision, as set out at paragraph (a) and (b) above, with authority to make any minor changes that may be required to give effect to this decision, in consultation with the Leader.


(d)  That the Assistant Director Law and Governance be authorised to complete and sign the required documents and agreements.


REASONS – (a)  To enable the transfer of the shares held by Peel Holdings Limited to be implemented.


(b)  To support the proposal of the Tees Valley Combined Authority to invest in the future of Durham Tees Valley Airport


Supporting documents: