Auckland Council have confirmed this week that they have sold seven per cent of its shares in the international airport.
This was announced via the council’s Annual Budget for 2023/24, which will be used to reduce council debt.
Without further ado, let’s get into it…
Auckland Council Sells Shares in the International Airport…
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Following this sale, Auckland Council still hold a 11.08% share of the international airport, which they believe “provides ongoing exposure to the future growth and value” of the location.
Adding to this was the council’s CEO Phil Wilson:
“When faced with an even greater budget gap as a result of three successive years of financial challenges brought about by the pandemic, flood and cyclone recovery, and inflation and interest rate hikes, the Governing Body agreed to sell-down a portion of the council’s shareholding in AIAL.”
“It set council staff firm guidance to achieve the best possible outcome, including offering the mana whenua of Tāmaki Makaurau the opportunity to participate in the sale.”
“We are advised that it is the only share sale of its size in New Zealand to be sold at a premium to the market traded price, and a testament to the process initiated by the council and its advisors.”
“The result is a significant return that will offset our existing debt profile and lower future interest costs,”
With the council distributing the shares to domestic and international wholesale investors, this will provide further longevity for growth going into the future.
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