Auckland Airport buys Queenstown stake for NZD27.7m
Auckland International Airport Ltd (AIA) acquired (08-Jul-2010) an initial 24.99% shareholding of the increased capital in Queenstown Airport Corp by subscribing for approximately 4 million new shares at a price of NZD6.91 per share for a total consideration of NZD27.7 million. AIA has an option to raise its stake to as high as 35% up to 30-Jun-2011. Funds from the sale will allow funding of capital works and strengthen the balance sheet, allowing dividend payments. The two companies will also work together on retail activities, property development and aeronautical operations [more] [Queenstown Airport - more] [Auckland Airport presentation - more]
Auckland Airport: “Over the past year or so, we have already been cooperating informally with Queenstown Airport in our marketing to airlines and the travel trade to create a stronger North/South Island itinerary proposition. We’ve had a very positive response which has been a key contributor to an estimated 36% uplift in Queenstown/Auckland traffic over the past 12 months. This experience gives us confidence we can achieve even faster growth through a formal strategic alliance." Chief Executive, Simon Moutter.