Sydney sale plan boosts airport stake

By Nick Stride

Friday 15th March 2002

John Goulter

An Auckland International Airport roadshow to Australian investors has pushed the share price to new highs ahead of the sale of Auckland City Council's strategic 25.8% stake.

The tour - which the airport makes routinely on the Monday after it announces its results - took place while a high-powered international group of airport investors was gathered there for the upcoming privatisation of Sydney Airport.

Auckland International Airport managing director John Goulter said the timing was entirely coincidental.

Australian treasurer Peter Costello said this week he wanted the $A5 billion ($6 billion) Sydney sale concluded "as soon as possible, for the best price possible."

The Sydney sale is bound to prove useful to the investment bank the council chooses to perform the scoping study for the sale of its shares.

Investment banks had until Wednesday to tender for the study and the winner will be selected on March 26.

The study is to be finished by April 26.

At the current share price of around $4.20 the council's stake is valued at $455 million.

Its value has risen 40% since last October.

Among the reasons for the strong rise have been the airport's strong financial performance despite the September 11 terrorist attacks and speculation the council's shares could be sold to a single buyer who would want to lift its holding to over 50%.

The three consortia competing for Sydney Airport constitute a who's who of regional and international airport investors.

The Sydney Gateway Group comprises Westpac, AMP, Deutsche Asset Management, Hastings Funds Management, Hong Kong-based Cheung Kong Infrastructure, and CDP Capital, a unit of Canadian bank Caisse de Depot et Placement de Quebec.

The Connect group includes ABN-Amro and French transport and engineering company Egis Group, and may include Frankfurt Airport operator Fraport.

The Southern Cross Airport Consortium includes Commonwealth Bank of Australia, Macquarie Airports, and German construction company Hochtief.

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