Directors helping city in airport shares sale

The Auckland City Council says the directors of Auckland International Airport have agreed to help it sell its 25.6 per cent stake in the airport.

The council plans to sell the airport shares to repay debt and provide money to improve the city's infrastructure.

"Having the company's assistance with the sale will help ensure that potential purchasers are well informed," the chairman of the council's working group, Doug Armstrong, said.

The sale will be aimed at trade buyers or institutional investors.

Several city councillors last month declined to sign a prospectus, needed to market the stake to retail investors.

The Securities Act requires a unanimous decision on the prospectus.

"Potential trade buyers will wish to visit the airport and meet management," Auckland City director of finance David Rankin said.

"AIA directors and management will also be assisting Auckland City with preparing institutional offering documents."

The council's 77.78 million shares are worth about $400 million.

- NZPA