Forum Archive Index - March 2002

["Nick Kearney" <nickk@quicksilver.net.nz>]

Certainly not full priced  IMHO.  I wonder though if buying now as an
investor would be smart.

Once the transaction goes through, will we see a big drop in price for a day
or two before a consolidation.  That might be the time to buy?

Am I right?

Nk
----- Original Message -----
From: "Matthew Van Veen" <mattvanveen@hotmail.com>
To: <sharechat@sharechat.co.nz>
Sent: Wednesday, March 20, 2002 9:35 AM
Subject: [sharechat] AKL Council to sell AIA stake


> 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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