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Auckland airport to raise NZ$126.4m through shares offer

Auckland International Airport plans to raise NZ$126.4 million ($89.5 million) through a shares offer to fund its recent acquisition of a stake in two Australian airports.

It will offer one new share at NZ$1.65 each for every 16 shares held, says the airport.

The funds raised will help fund its recent A$132.8 million ($120 million) purchase of a 24.55% stake in Cairns and Mackay airports in Queensland, Australia.

"The acquisition was financed from existing debt facilities and Auckland Airport will use the proceeds of the offer to repay a portion of the debt drawn down to pay for the acquisition," says the airport.

Its chairman Tony Frankham adds: "The offer allows Auckland Airport to carry out the acquisition and at the same time maintain its credit rating."

In the airport's prospectus for the share offer, it reports operating earnings before interest, taxation, depreciation and amortisation of NZ$138.8 million for the six months ended 31 December 2009, compared with NZ$138.7 million in the corresponding period a year ago.

Its total revenue fell 0.6% to NZ$182.9 million, largely a result of reduced retail revenue, adds the airport.

Total passenger volumes rose 2.3% to 6.8 million, and total aircraft movements were down 2.9%, it says.

The airport will announce its full operating and financial results for the six months ended 31 December 2009 at the end of February, it adds.

Trading of the airport's shares on the New Zealand stock exchange has halted while the airport implements the shares offer.

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