Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Residents missed share buying opportunity

Chairperson disappointed residents missed share buying opportunity

Ratepayers and residential investors should have been given the opportunity to buy some of Auckland City’s airport shares at the same price as institutional purchasers, says the chairperson of the council’s Auckland International Airport Working Party, Councillor Douglas Armstrong.

Last week the council announced the sale of half of its 25.6% shareholding in the airport at $4.90 per share, a discount to the then market price of $5.16.

Councillor Armstrong says he is very disappointed indeed that a minority of five councillors, who were opposed to the sale, prevented the issuing of a prospectus that would have enabled the council to offer shares to the public on favourable terms – with the city’s ratepayers and residents being given a priority allocation.

“The council consulted widely and took a democratic majority decision to sell down its shareholding in the airport. It is sad and unfortunate that the preferred sales process was not able to be undertaken. Instead, the council was restricted to selling its shares directly to local and overseas institutions. This meant that the public missed out on the opportunity to buy shares at the discounted market price.”

Councillor Armstrong says he can understand why many residents and ratepayers feel aggrieved that they could not purchase shares directly from the council at around $4.90.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 
 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.