Forum Archive Index - September 2002

["U.N. Owen" <estorage25@hotmail.com>]

Could someone please explain how the Auckland Airport proposed Capital 
Repayment will work for shareholders.
The announcement below was made yesterday but I am not sure exactly what it 
means as the shares are currently trading at $4.13. They are to cancel 
shares and pay out per share less than the current price???


As a consequence of a full evaluation of the strategic direction of the
company, its future cash requirements and optimal capital structure, the
directors have announced that approximately $212.0 million of capital 
should,
subject to the necessary approvals, be repaid to shareholders on a pro rata
basis by the cancellation of seven shares in every 25 and the payment of
$1.80 for each share cancelled. Funding for the repayment will be provided
from increased borrowings. The company has sufficient capital to enable the
full amount of the repayment to be returned tax-free to most shareholders.




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