Auckland Airport considers options to sell stake in North Queensland Airports
By Sophie Boot
Jan. 3 (BusinessDesk) - Auckland International Airport is still considering its options for its 24.55 percent stake in North Queensland Airport and expects to give an update by next month.
In the company's annual report released in August 2017, it said that while a strategic review confirmed that NQA was a quality asset "and a great investment with a strong growth strategy and a new and highly capable management team", it wasn't integral to its current business strategy.
The airport said three options - to continue to hold the stake in the airport, to sell to one or more of the existing NQA shareholders, or to sell to a third party in accordance with the security holders agreement - remain on the table, but it prefers to sell the asset.
"We have encountered strong buyer interest and expect to provide a more detailed market update on or before our FY18 interim results announcement in February 2018," the company said.
In August last year, the company lifted annual profit 27 percent to $332.9 million with growth from domestic and international passengers and said it expected underlying earnings growth in 2018. The airport is implementing a massive $1.9 billion infrastructure investment programme that includes a new runway by 2028 and has said it will need to consider capital funding options in the next five years to support the work.
The shares last traded at $6.61, up 2 percent today and 5.8 percent in the past 12 months.