"New Zealand officials watching progress of Sydney Airport sale"

Wednesday, June 26, 2002

Council watching progress of Sydney Airport sale
The New Zealand Herald


Sydney Airport's higher than expected sale price augurs well for Auckland
City Council, which is selling its 25.7 per cent stake in Auckland
International Airport, worth $470 million at the current share price.

The council is working with its advisers on the best way to sell its stake.
Council finance director David Rankin said Sydney's price indicated the high
level of interest in airports in this part of the world.

ABN Amro analyst James Miller said the fact the consortium was financing
part of the deal by selling units in a new retail trust indicated an
appetite for the shares by private investors, which could have positive
connotations for the council. Another analyst said a negative for the
council may be a perception that because the consortium paid more than
expected, members such as Macquarie Airports might be less likely to bid for
the council's shares.

The big difference between Sydney and Auckland is that the buyer of the
council's quarter share won't gain full control of the airport, and won't be
able to put in place the kind of financing structures it might want to
extract greatest value from its investment.

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