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.