Council will not launch retail offer for Auckland Airport stake

By NZPA

Wednesday 23rd October 2002

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.

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