AFR: Auckland International Airport finds buyer for Cairns Airport stake
The deal values Cairns Airport’s equity at $NZ1.51 billion ($1.38 billion), which is about 20-times forecast profit based on earnings forecast estimates by Kiwi stockbroker Forsyth Barr.
As Street Talk reported last week, Auckland International Airport has had First NZ/Credit Suisse marketing its stake recently, as part of a strategic review. The company told shareholders earlier this month that it had seen “strong buyer interest” in the non-core asset, and it was progressing plans to sell its holding.
North Queensland Airports owns Cairns Airport – Australia’s seventh largest airport by annual passenger numbers – and Mackay Airport.
North Queensland Airports reported $142.7 million revenue and a $46.8 million net profit after tax in the year to June 30, according to AIA’s annual report.
Will have to check back through AIA disclosures to verify but not a bad return over seven years since January 2010 if these media reports are accurate: Auckland Airport buys stake in North Queensland Airports
AUCKLAND International Airport said today it has agreed to purchase a 24.6 per cent stake in North Queensland Airports from Westpac Bank.
The Auckland-based company said the stake in North Queensland Airports, which operates the Cairns and Mackay airports in Queensland, will cost approximately NZ$166 million (A$132m).
This sale transaction is valued at A$370 million for the 24.6% AIA stake. Well at least we funded a hospital expansion from the privatisation proceeds of A$530 million in December 2008.
Interesting. If it’s like Brisbane Airport they’ve make a fortune from car parking. Only very lightly regulated by ACCC.
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Not sure on the car parking contribution at Cairns although the absence of any public transport has been an issue particularly following a pedestrian fatality on the access road. Auckland look to have got their timing pretty good having bought their share in 2010 from Westpac post the 2008 privatisation and with strategic options at home.
The timing of the 2008 privatisation doesn’t look quite so flash. There was a redevelopment of domestic and car parking around that time which many would still regard as something of a “lemon” from a user perspective.
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