Media release – for immediate use
Mayor Len Brown
27 January 2010

Council airport shareholding crucial to retaining share in strategic asset

Manukau Mayor Len Brown said Manukau Council’s decision to take up Auckland International Airport’s share offer guarantees continued public ownership of a cornerstone stake in a key strategic asset.

“Auckland International Airport is a key asset for the region and the country.  Our decision to take up the share offer means Manukau’s shareholding retains its existing share of the company, which is 10.013%.

“The decision ensures the Council’s shareholding remains over 10 percent, and therefore unable to be bought out in the event of any takeover attempt. Failure to take up the offer would, in effect, be selling down of the Council’s stake.

“It was important our council to take up its shares to guarantee the continuation of a regional stake in such an important asset.

“Our shareholding enables us to continue to have a say in the direction and development of the company.  One only has to see the tremendous development at and around the airport over the past decade to understand how important its continued growth and vitality is to the local economy.

“On pure commercial grounds, it is the right decision.  The company is a quality asset which returns good dividends.

“The council and people of Manukau strongly support public ownership of key assets – like airport shares, water companies, and the port – as the city’s future development.

“We need to grow our future, not sell it.  Public ownership of key assets is crucial to building a world-class city.  With the new super city, Manukau’s shareholding is an investment on behalf of all of Auckland.”

Manukau City Council will purchase 7,671,728 shares through the share offer at a cost of $12,658,321.20.  Its current shareholding of 10.013% percent will remain the same.

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