Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Auckland Airport plans to return $454M to shareholders

Auckland Airport plans to return $454M by cancelling one in 10 shares

Nov. 28 (BusinessDesk) – Auckland International Airport, the nation’s busiest gateway, plans to return $454 million to shareholders by way of a share cancellation, with 60 percent of the payment to be treated as a taxable dividend.

The company will seek shareholder approval in February for a scheme of arrangement to cancel one in 10 shares at $3.43 apiece, compared with their most recent trading price of $3.415. The transaction requires approval of at least 75 percent of voting shareholders and the company would then seek final High Court clearance in March, with the return of capital aimed for mid-April, it said in a statement.

The airport said 40 percent of the payment will be a capital return for tax purposes and the balance treated as a dividend, fully imputed at 28 percent tax rate.

“The company’s strong performance over the past five years, including our successful property development and retail businesses and our investments in other airports, means we currently have a less efficient mix of debt and equity than we had in the past,” chairman Henry van der Heyden said.

“By returning capital to our shareholders we can improve our balance of equity and debt, returning to levels achieved in 2011,” he said.

The airport said it is well placed to continue investing in the upgrade of its domestic terminal even with the return of capital. It doesn’t expect any impact on its A- credit rating with Standard & Poor’s.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

NZ's Space Programme: Rocket Lab Makes It To Space (But Not Orbit)

Electron lifted-off at 16:20 NZST from Rocket Lab Launch Complex 1 on the Mahia Peninsula in New Zealand. It was the first orbital-class rocket launched from from a private launch site in the world. More>>

ALSO:

Earlier:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO:

MPI: Myrtle Rust Appears In Taranaki

The nursery in Waitara (just north of New Plymouth) reported suspected myrtle rust symptoms on young plants to the Ministry’s 0800 number yesterday (Tuesday). More>>

ALSO: