Sharechat Logo

Council will not launch retail offer for Auckland Airport stake


Wednesday 23rd October 2002

Text too small?
Auckland City Council will not offer its 25.6 percent stake in Auckland International Airport to retail investors.

The council is currently discussing the sale of its airport stake, and five councillors have not agreed to sign a retail sale prospectus, councillor Douglas Armstrong said in a statement today.

A general retail offer may have included a preferential allocation to residents and ratepayers.

Fifteen councillors said they would sign a prospectus, but the Securities Act required a unanimous decision.

Mr Armstrong said three of the councillors who would sign indicated their support for an offer to retail investors while being philosophically opposed to a sale.

The council, which has not made a final decision on the sale, was able to proceed with a sale to trade and institutional investors, which does not require a prospectus.

The council's 108 million shares were worth $562 million at the current share price of $5.24, down 2c.

The council planned to use the money to reduce debt and improve infrastructure in the city.

In September, the council said it was already talking to potential buyers.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Auckland International Airport Limited (NZX: AIA)
Auckland Airport sees growth in luring Asian travelers, tapping landbank
Auckland Airport shares climb to 6-year high on better earnings, higher dividend
Auckland Airport boosts FY profit 25 percent as property values rise, ups dividend
Auckland Airport expected earnings just within regulator's tolerance
Ex-Fonterra chairman van der Heyden to lead Auckland Airport board
Auckland Airport's 8 percent expected returns 'reasonable', regulator says
Auckland Airport 1H profit rises 11 percent on growth in domestic passenger traffic
Pre-Offer Announcement - Auckalnd International Airport
Auckland Airport flags $100 mln bond offer