Media release
6 September 2004

HOLDING ON TO AIRPORT SHARES A GOOD DECISION

Manukau City Council has received a dividend of $8.107 million from its shareholding in Auckland International Airport Ltd, for the year to 30 June 2004.

The value of the shareholding has risen to $ 211.7 million. This compares to the Council's public debt of $127 million.

The Council is the second largest shareholder with 29.2 million shares (9.6%), the value of which has been increasing steadily year by year. The shares were originally $1.80 each when issued in 1998. They are now selling at $7.25 (as of today, September 3). Since the shares were issued, all councils except Manukau and Auckland have sold their shareholding.

Mayor Sir Barry Curtis says, "I was certain our shareholding would rise in value over the years and it has. In recent years there have been calls for us to sell the shares. I always opposed that and I am glad commonsense prevailed, as it would have been very foolish to sell."

"Having this asset has been very beneficial for ratepayers and other residents of Manukau. We get multi-million dollar dividends and it's also an asset that continues to grow in value. "Manukau has gained enormously from keeping its shares. Auckland International Airport is a very valuable investment because it is a well managed company with strong assets. Over the past year it has performed extremely well and made a profit of over $94 million."

ENDS

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