| Decision | Consent Granted Section 12(b) Overseas Investment Act 2005 |
|---|---|
| Decision date | 28 May 2010 |
| Investment | An overseas investment in sensitive land, being the Applicant's acquisition of rights or interests in up to 49.9% of the shares of Queenstown Airport Corporation Limited (QACL) which owns or controls:
through the issue of new shares by QACL. |
| Consideration | Effective 8 July 2010, Auckland Airport acquired an initial 24.99% shareholding of the increased capital in QACL by subscribing for approximately 4.0 million new shares at a price of $6.91 per share, for a total consideration of $27.7 million. QACL may exercise an option for Auckland Airport to increase its shareholding to 30-35% at any time up to 30 June 2011. The price for the additional shares will be $7.47 per share, plus a lump sum consideration of $2.2 million, reflecting the additional value of a shareholding over 25%. |
| Applicant | Auckland International Airport Limited Various overseas persons (22.9%) New Zealand Public (18.76%) Auckland City Council, New Zealand (12.63%) New Zealand Superannuation Fund Nominees Limited, New Zealand (10.21%) Manukau City Council, New Zealand (9.95%) Australian Public (7.03%) HSBC Nominees (New Zealand) Limited, New Zealand (5.84%) National Nominees NZ Ltd, New Zealand (5.69%) United States Public (4.41%) United Kingdom Public (2.58%) |
| Vendor | The Applicant owns and operates the Auckland International Airport, New Zealand's largest and busiest airport in terms of both passenger movement and revenue. The Applicant will subscribe for new shares in QACL, comprising up to 24.99% of the total shares in QACL (the initial issue of shares). QACL owns and operates Queenstown International Airport, the fifth largest airport in New Zealand in terms of passenger numbers. QACL may exercise an option which would allow the Applicant to subscribe for further shares in QACL, which will, together with the initial issue of shares, comprise up to 49.9% of the shares in QACL. The investment will foster a closer strategic and working relationship between the two airport companies, and provide QACL with capital to pursue development and expansion opportunities. |
| Background | The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. |
| More information | Pip Greenwood Russell McVeagh PO Box 8 AUCKLAND |