Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR) Q2 2023 Earnings Conference Call July 25, 2023 10:00 AM ET
Company Participants
Adolfo Castro - Chief Executive Officer
Conference Call Participants
Rodolfo Ramos - Bradesco BBI
Guilherme Mendes - JPMorgan
Javier Gayol - GBM
Anton Mortenkotter - GBM
Jay Singh - Citi
Alan Macias - Bank of America
Operator
Good day, ladies and gentlemen, and welcome to ASUR's Second Quarter 2023 Results Conference Call. My name is Kevin, and I'll be your operator. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of today's conference. [Operator Instructions] As a reminder, today's call is being recorded.
Now I would like to turn this call over to Mr. Adolfo Castro, Chief Executive Officer. Please go ahead, sir.
Adolfo Castro
Thank you, Kevin, and good morning, everyone.
Before I begin discussing our results, let me remind you that certain statements made during this call may constitute forward-looking statements, which are based on management's expectations and believes and are subject to several risks and uncertainties that could cause actual results to differ materially, including factors that may be beyond our company's control.
Additional details about our quarterly results can be found in our press release, which was issued yesterday after market close and is available on our website in the Investor Relations section. Following my presentation, I will be available for Q&A.
Before getting into a discussion of the quarterly results, let me start today's call with recent developments in terms of capital allocation. Through a U.S. subsidiary, ASUR recently entered into a joint business investment agreement with Grupo Abrisa and CVC One to develop and built a private international airport in Bavaro, Dominican Republic. This entailed an initial investment by ASUR of $17.8 million that was paid in June, funded by internal generated funds. Once the construction of this airport is finalized, we expect to maintain a 25% ownership stake in venture, representing a total estimated investment for ASUR of $66 million. The remaining $48.2 million to be invested by ASUR will be applied to the construction of the airport.
The Abrisa Group is a well-respected and diversified business group based in Dominican Republic, with a leading market position in construction, real estate development, health and education. Since its foundation, the Abrisa Group has been committed to helping people acquire basic goods and services, such as housing, healthcare and education. The Abrisa Group were the founders of AERODOM in 2002, which operated six airports in Dominican Republic. Among them, Las Americas Airport in Santo Domingo that was sold to Advent International in 2008.