Infratil is seeking a further $100m through a retail offer to shareholders that opens on Tuesday.
While the Auckland Council debated selling 8.08 per cent of its 18.08 per cent shareholding, Auckland International Airport was down 0.005c to $8.58 after outlining a new schedule of increased airline landing charges up to 2027 and beginning on July 1 this year.
Some charges will more than double by the end of five-year price setting period, and will help fund $2.5 billion worth of development, including the new domestic terminal (integrated with international), stormwater upgrades, and baggage handling and transport improvements.
Overall, the airport has a $3.9b development pipeline over the next five to six years, and it said new equity may be raised in future.
Matt Goodson, managing director of Salt Funds Management, said if Auckland Council reduced its shareholding, it might have a modest short-term impact on the airport’s share price because of the number of shares being sold.
“What people forget is that when the airport had its post-Covid capital raise ($1.2 billion), the council couldn’t participate at $4.66 a share and everyone else was tripping over themselves to take up the offer,” he said.
“The airport is suggesting another equity raise down the track and if the council was unable to buy-in again, then maybe it’s not the right owner of the (airport) asset.”
Goodson said there was no rationale in the suggestion that Auckland Council had a “blocking stake” should a takeover ever eventuate. “That’s just a soundbite.”
He said there was a strong reaction from Qantas and Air New Zealand over the new charges which were “at the very top end of anyone’s expectation. Qantas even suggested it might impact Jetstar’s operations.”
In a joint statement, the airlines said the steep price increases over the next five years will push up the price of travel, and tourism and trade will suffer.
Goodson said the airport was going so hard with capital expenditure that the new fees being charged were becoming a political issue.
Air New Zealand was up 1c to 78c after upgrading its full-year operating earnings to no less than $580m, from the previous guidance of $510m-$560m. The national airline told the market that demand was stronger than normal at this time of the year and jet fuel prices have fallen further.
Meridian Energy, down 11.5c or 2.09 per cent to $5.38, told the market that the demand response agreement with NZ Aluminium Smelter till the end of next year is now unconditional. Electricity consumption at the Tiwai Point smelter will be reduced by up to 50MW when requested by Meridian to reduce pressure on the network.
Other leading energy stocks Mercury declined 17c or 2.52 per cent to $6.37; and Contact was down 15c or 1.85 per cent to $7.95.
Cancer diagnostic firm Pacific Edge lost another 0.007c or 6.42 per cent to 10.2c after its darkest day on the market the day before when the share price plunged 78 per cent.
Summerset Group was down 20c or 2.18 per cent to $8.99; Port of Tauranga declined 14c or 2.24 per cent to $6.11; AFT Pharmaceuticals shed 16c or 4.1 per cent to $3.74; and Restaurant Brands decreased 18c or 2.66 per cent to $6.59.
Stride Property declined 3c or 2.21 per cent to $1.33; Delegat Group shed 31c or 3.2 per cent to $9.39; Accordant Group fell 14c or 8.54 per cent to $1.50; and Savor was down 1.5c or 4.23 per cent to 34c.
Ebos Group rebounded 45c to $35.95; Heartland Group increased 8c or 5.03 per cent to $1.67; KMD Brands was up 2c or 1.87 per cent to $1.09; and Warehouse Group added 3c or 1.84 per cent to $1.66.
Skellerup Holdings gained 7c to $4.70; Kiwi Property increased 3c or 3.7 per cent to 92c; Vista Group was up 4c or 2.82 per cent to $1.46; and Cannasouth rose 2.5c or 9.8 per cent to 28c.
Software firm Blackpearl Group was up 1c or 2.27 per cent to 45c after telling the market it gained $339,536 new annual recurring revenue in May.
Medicinal cannabis company Rua Bioscience, unchanged at 16.2c, has announced its first sales in Germany – 13,000 grams or 28 pounds of dried flower product.
