OREANDA-NEWS. Sheremetyevo International Airport on October 23 extended the bidding period for its stake in Vladivostok Knevichi International Airport on potential buyers' requests. The bid time was moved from October 31 to November 21.* The VEGAS LEX law firm provides all the necessary legal support for the sale, including the interaction with all the registered and potential bidders. The InfraONE First Infrastructure Company acts as Sheremetyevo's agent for the bidding process.

Under the conditions of the request for proposals made by Sheremetyevo on August 21, potential buyers were to make their final proposals about acquiring the assets by October 31. The deal will include a 52.16% stake in Vladivostok International Airport, 74.99% of Vladivostok Terminal, as well as the accounts receivable arising from a loan Sheremetyevo earlier extended to Vladivostok Terminal.

All bidders have to meet strong requirements concerning the size of their capital as well as their experience in managing infrastructure and transport assets.

Still, over the two months after the bidding was announced, five bids have come from private airport operators and major financial investors in infrastructure projects. More Russian and foreign buyers plan to send their proposals in a few days.

All the registered potential buyers were given access to the data room after they signed a confidentiality agreement, and began their due diligence. Several bidders cited the large amount of technical, financial and legal documents they need to study as the reason they need more time to prepare and lodge their final proposals. As a result, Sheremetyevo agreed to move the bid date three weeks ahead.

The high investor interest to Knevichi Airport is caused by at least three reasons.

Firstly, Knevichi is the only major airport asset located in Russia's Far East that has no strategic investor yet. All private airport operators earlier mentioned the need to expand presence to the region. The region's importance has grown even higher over the last few months due to the Federal Targeted Program "Economic and Social Development of the Far Eastern and Baikal Region until 2025" and to the large investment projects planned with China. These projects are bound to influence the development of the Primorye Territory and the city of Vladivostok.

Secondly, Knevichi Airport has the most cutting-edge ground, terminal and runway infrastructure among regional airports. It was modernized significantly before the APEC meeting in 2012; a new terminal was built with additional ground infrastructure, boosting the airport's throughput capacity to 3.5 million passengers a year. In 2013, the increase in passenger traffic through the airport grew by 15%.

Thirdly, starting from November 2011, Russia's Transport Ministry lifted the restrictions on foreign airlines flying to Knevichi, including the so-called fifth freedom of the air between Vladivostok and destinations in third countries. This has led to an additional increase in passenger traffic through Knevichi to many destinations.