Infratil stays clear of upcoming share sell-offs

By DANIEL RIORDAN and REUTERS

Utilities investor Infratil said yesterday it was not interested in taking a holding in either UnitedNetworks or Auckland International Airport, both of which will soon have major stakes up for sale.

The Auckland City Council plans to sell its 25.7 per cent stake in Auckland Airport and UnitedNetworks is seeking buyers for all of its shares or assets as its majority shareholder, Aquila, wants to exit its 70 per cent stake.

Infratil, which has assets approaching $800 million and is managed by investment bank Morrison & Co, was once a small shareholder in Auckland Airport before it floated as a publicly listed company in the late 1990s.

"I think AIA is a well-run business and I don't think it would be easy for us to add material value to it," Morrison & Co chairman and chief executive Lloyd Morrison said.



He said Infratil would not be interested in UnitedNetworks - New Zealand's biggest power distributor that has already attracted 20 expressions of interest.

Infratil has a 27.9 per cent stake in power generator and retailer TrustPower and legally cannot own both generator-retail and lines businesses.

"Were we to sell out of TrustPower, would we go into UnitedNetworks at these levels? No, I don't think so," Morrison said.

Infratil said passenger numbers at Glasgow Prestwick International Airport, owned 62.7 per cent by the investment company, rose 23 per cent over the June quarter (compared with the same quarter last year), and freight volumes were 15 per cent higher.

Infratil's investment in the airport is valued at $112.4 million in its annual report, which was mailed to shareholders yesterday.

As Infratil expands its investment focus, it is changing the terms of its management contract with Morrison & Co.

The changes will need Stock Exchange and shareholder approval.