Changi offloads airport shares

By Phil Boeyen, ShareChat Business News Editor

Tuesday 18th December 2001

Singapore's Changi Airport has surprised the market by selling its shares in Auckland International Airport (NZSE: AIA).

The Singapore business held 7.1% or 30 million shares in AIA and has sold them at a price of $3.58. It bought into the airport two years ago when it purchased North Shore City Council's stake for $2.90.

The sale gives Changi a profit of around $20.4 million on its investment.

At the time of Changi's initial investment AIA said the association would "undoubtedly provide opportunities for further development within the Asia Pacific region."

The Singapore company says it continues to believe that the Auckland airport company is an exceptionally well managed and operated airport.

"However, the AIAL shareholding no longer fits within SCAE's investment strategy which is now more focused on other international markets in conjunction with Alterra Partners."

Changi says its shares were sold through a global bookbuild lead managed by ABN AMRO Rothschild, with most of the stock placed with international institutions, as well as local investors.

There has been considerable market speculation that Changi would want to increase its stake in the Auckland business rather than sell its holding, and it has often been touted as a potential buyer of the shares held by other council stakeholders.

Comments from our readers

No comments yet