Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


AIAL to assist with Auckland City share sale

MEDIA RELEASE
5 November 2002

AIAL to assist with Auckland City share sale

“Auckland International Airport Limited’s (AIAL’s) directors and management have agreed to assist Auckland City with the sale of its 25.6 per cent stake in the airport,” says the chairperson of the council’s working group, Councillor Douglas Armstrong.

The council is intending to sell the airport shares to repay debt and provide the funds necessary to improve the city’s infrastructure.

“Having the company’s assistance with the sale will help ensure that potential purchasers are well informed,” says Councillor Armstrong.

The council is using a dual-track sales process. The sales strategy will target trade buyers and institutional investors to achieve the best price and maximise any sale proceeds. The shares will only be sold if a good price can be obtained, according to Councillor Armstrong.

“Potential trade buyers will wish to visit the airport and meet management,” says Auckland City Director of Finance David Rankin. “AIAL directors and management will also be assisting Auckland City with preparing institutional offering documents.”

Mr Rankin says that Auckland City needs to compensate AIAL for the time its directors and management spend helping the city, and meet the costs of AIAL’s legal advice.

“We are confident the benefits from AIAL assistance in terms of the price we get for the shares will far outweigh these costs,” Mr Rankin says. “It is reasonable for AIAL to require compensation for providing assistance which provides direct benefits only to one of its shareholders, albeit a major one.”

Auckland City will also indemnify the company, directors and management for any liabilities arising for them under the sales process. An indemnity will also be put in place for Auckland City councillors and officers.

A liability could arise if a share buyer considers they have been misled by AIAL or Auckland City during the sales process and have suffered a loss as a result. However, the due diligence process that Auckland City and AIAL have entered into to prepare the offer documentation minimises this risk, Mr Rankin says.

“Auckland City’s decision to indemnify AIAL, councillors and officers is normal business practice. The New Zealand Government also put in place indemnities for AIAL when it sold its shares in the company in 1998. The indemnities are very much a precautionary measure and I have every confidence the protocols we have already established for the sales process will mean there won’t be any claims.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news