$14 mil dividend payout on Manukau airport shares
June 30, 2005
$14 million dividend payout on Manukau airport shares
As a result of an announcement by Auckland International Airport Limited today, Manukau City Council is to receive a special dividend from its shareholding in the airport company of fourteen million dollars. In total, $200 million will be distributed to all shareholders by AIAL.
The Council had been expecting a dividend of ten million dollars as a result of a capital structure review. But the final result is much better than anticipated, reflecting the continued successful performance of the company.
Mayor Sir Barry Curtis says, “The announcement is extremely good news for the council as it means an extra four million dollar dividend, which will be used to cut debt and to pay for new assets and infrastructure.”
The Council holds 116 million shares and the value of this shareholding rose 2.4 per cent as a result of the dividend announcement, which reflects the operating strength of the company. The shareholding is now worth approximately 278 million dollars.
Sir Barry says he fully expects that value will continue to rise. “This result once again proves the wisdom of the decision taken in the past to hold on to our shareholding and to resist calls to sell our airport shares. I have always believed they are a first class investment and a superb asset for the city. In addition to the announcement today, we are expecting a nine million dollar return on the shareholding later in the financial year, an amount matching the return of last year.”