Forum Archive Index - March 2002

["Matthew Van Veen" <mattvanveen@hotmail.com>]

I have just read this - should make for an interesting couple of months. I 
would tend to think that there will be one big buyer out there somewhere 
that will snap these up - but then again is the price currently at full 
value?

Council to sell airport stake
20 MARCH 2002

Auckland City Council yesterday approved the sale of its 25.7 percent stake 
in Auckland International Airport.

The council said it hoped to net between $424 million and $475 million from 
the sale – based on a share price of $3.92 to $4.40 – and the proceeds, 
which it expects to receive by December 31, would be used to repay debt.

Auckland's debt is forecast to double to $350 million within two years as 
the city expands its congested motorways and upgrades sewers.

The council's shareholding may have to be split to prevent the sale 
triggering a takeover offer for the airport, the country's biggest.

Under new takeover laws, an investor buying 20 percent of a company must 
make an offer for all the shares in the business, or have the purchase 
approved by other shareholders.

Last week the council said it expected to name an adviser for the share sale 
by the end of March.

Shares in Auckland Airport closed yesterday up three cents at $4.43. There 
have been concerns in the past that the sale would create a share overhang, 
but good profit figures have seen the stock rise by more than 16 percent in 
the last three weeks.

The airport last month posted a $35.1 million net after tax profit for the 
December half year, up 23 percent on the same period a year earlier, and 
said overseas passenger movements in January and February were 2.8 percent 
ahead of last year.




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