Airport management to help sell council stake

By NZPA

Wednesday 6th November 2002

Auckland City Council said today the directors of Auckland International Airport Ltd (AIA) have agreed to help the local body divest its 25.6 percent stake in the airport.

The council plans to sell the airport shares to repay debt and provide funds to improve the city's infrastructure.

"Having the company's assistance with the sale will help ensure that potential purchasers are well informed," Douglas Armstrong, chairman of the council's working group said.

The sale is set to target trade buyers or institutional investors, after several members of the council last month declined to sign a prospectus -- needed to market the stake to retail investors.

The Securities Act required a unanimous decision on the prospectus.

"Potential trade buyers will wish to visit the airport and meet management," Auckland City director of finance David Rankin said.

"AIA directors and management will also be assisting Auckland City with preparing institutional offering documents."

The council's 77.88 million shares are worth $519 million at today's closing price of $5.28, down 10c.

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