floyd
20-02-2005, 06:47 PM
Hold both, quite an interesting concept but it would have to be a pretty good takeover offer.........[8)]
Takeover rumours surround airport
19 February 2005
By PAM GRAHAM
Speculation is rife that the owner of Sydney Airport may launch a multibillion-dollar takeover bid for Auckland International Airport, but it is no sure thing because it could prove too expensive.
This is the view of Macquarie Equities in a research report noting speculation that the next big trans-Tasman deal could be airports.
The biggest reason for Macquarie Airports, the listed infrastructure investor that owns Sydney Airport, to bid for Auckland International Airport would be that Auckland's price to earnings multiple is lower than Macquarie's. It is cheaper.
But Macquarie Equities warns against a straight comparison of earnings multiples.
It said Macquarie Airports' investments had large amounts of capital expenditure behind them and Auckland Airport had large capital expenditure in front of it.
Macquarie Airports was created by Macquarie Bank, which also owns the Macquarie Equities brokerage.
Any bid would have to be at a premium because Macquarie Airports would not want Auckland International Airport to remain listed.
The Auckland airport is still 12.76 per cent owned by Auckland City Council and 9.56 per cent owned by Manukau City Council.
Its shares have risen 1.5 per cent to a record $8.50 since the Macquarie research report was published last week.
This is almost five times the $1.80 price at which the airport was floated in July 1998, when the central government sold its 51.6 per cent stake to more than 60,000 small investors.
Auckland's international passenger volumes are forecast to grow above long-term trends for the next five years. Auckland Airport has traditionally generated operating margins of above 75 per cent – to the envy of most peers, including Macquarie Airports. It handles 75 per cent of all international passenger volumes in New Zealand.
Auckland International Airport also has a land bank of 1503 hectares, of which only 262ha has been earmarked for development so far.
If it had to pay Macquarie Airports' usual 1 per cent management fee, its forecast earnings multiple for 2005 would rise from 14 to 16.4 in 2005 and from 12.5 to 14.8 in 2006.
This more expensive price was not compelling.
"A bid can't be ruled out, but it is not necessary to sustain a positive view on the company," the report concluded.
Takeover rumours surround airport
19 February 2005
By PAM GRAHAM
Speculation is rife that the owner of Sydney Airport may launch a multibillion-dollar takeover bid for Auckland International Airport, but it is no sure thing because it could prove too expensive.
This is the view of Macquarie Equities in a research report noting speculation that the next big trans-Tasman deal could be airports.
The biggest reason for Macquarie Airports, the listed infrastructure investor that owns Sydney Airport, to bid for Auckland International Airport would be that Auckland's price to earnings multiple is lower than Macquarie's. It is cheaper.
But Macquarie Equities warns against a straight comparison of earnings multiples.
It said Macquarie Airports' investments had large amounts of capital expenditure behind them and Auckland Airport had large capital expenditure in front of it.
Macquarie Airports was created by Macquarie Bank, which also owns the Macquarie Equities brokerage.
Any bid would have to be at a premium because Macquarie Airports would not want Auckland International Airport to remain listed.
The Auckland airport is still 12.76 per cent owned by Auckland City Council and 9.56 per cent owned by Manukau City Council.
Its shares have risen 1.5 per cent to a record $8.50 since the Macquarie research report was published last week.
This is almost five times the $1.80 price at which the airport was floated in July 1998, when the central government sold its 51.6 per cent stake to more than 60,000 small investors.
Auckland's international passenger volumes are forecast to grow above long-term trends for the next five years. Auckland Airport has traditionally generated operating margins of above 75 per cent – to the envy of most peers, including Macquarie Airports. It handles 75 per cent of all international passenger volumes in New Zealand.
Auckland International Airport also has a land bank of 1503 hectares, of which only 262ha has been earmarked for development so far.
If it had to pay Macquarie Airports' usual 1 per cent management fee, its forecast earnings multiple for 2005 would rise from 14 to 16.4 in 2005 and from 12.5 to 14.8 in 2006.
This more expensive price was not compelling.
"A bid can't be ruled out, but it is not necessary to sustain a positive view on the company," the report concluded.