Infratil airport deal approved

Infratil shareholders have approved the Wellington-based utilities company's bid to take full ownership of Scotland's Glasgow Prestwick Airport.

The company will buy the remaining 23 per cent it does not already own from Utilico Investment Trust for £10.3 million ($29 million).

A special shareholders' meeting in Wellington yesterday also approved two resolutions allowing Utilico and Infratil manager Morrison & Co to increase their combined shareholding in the company to a maximum 29.91 per cent by exercising warrants to buy 15 million shares.

A resolution approving a buy back of 10 million shares by August 31 next year to allow Utilico and its associates to increase their holding to 31.35 per cent was also passed.

However, any buy back would depend on market conditions and other factors at the time.

Utilico is controlled by Infratil director, British businessman Duncan Saville. Mr Saville did not attend the meeting.

"In a sense, I regret that Duncan Saville is not here, but it is good that the Infratil side of the transaction can freely talk about it if we wish," Infratil chairman Kevin O'Connor said.

The purchase price was reduced from £11.7 million after operating accounts for the airport for the three months to February were "materially below expectations".

- NZPA