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While foreign firms press ahead with offers for Auckland Airport, the New Zealand publicly listed owner of Wellington Airport - Infratil - is raising a $175 million war chest for its own acquisition plans.
New Zealand's only infrastructure company announced yesterday it was raising the money through a renounceable rights issue with one share available for each five already held by shareholders. The rights, valued at $2, will be issued in instalments with $1 payable in September and another $1 in August next year.
Infratil - which is active in Australasian energy and New Zealand public transport sectors - also owns Glasgow Prestwick in Scotland, an airport in Kent near London and Lubeck Airport in Germany.
Announcing the rights issue at its annual general meeting yesterday, the company said it was looking at new acquisitions.
Chief executive Lloyd Morrison gave the AGM an upbeat summary about prospects for the airports sector in Europe but chairman David Newman insisted there were no specific assets in mind.
"This is our first equity raising since 1996," Newman said. "We are raising it because we feel there are attractive opportunities which can be gainfully employed in our existing business for future acquisitions.
Newman said that, initially at least, Infratil would use $175 million to pay down debt.
The sale of Auckland Airport - the target of an offer by Dubai Aerospace International - would see Infratil working alongside the new owner as a New Zealand airport owner. It might also be a competitor.
Morrison confirmed Infratil was still keen to develop a second Auckland airport in Whenuapai.
The proposal is being stalled through lack of political support.
Morrison said he did not see any direct impact on Infratil if any sale of Auckland Airport to a foreign company went ahead.
Some assets were more politically sensitive than others, he said.
"I am a big supporter of foreign investment in New Zealand but we need to focus on areas where it brings greater value through new capital or expertise that is not here already.
"If a business is well capitalised, well managed and has a good future it is only natural to query why a sale is taking place."
