Auckland International Airport Limited (AIA)

[COLIN]

With around 94 million shares traded off market at 184 this morning (9c discount to market) further weakness in AIA this week looks likely.

That was just IFT selling off, by way of an institutional book-build, to help fund their Shell J/V proposed purchase. It shouldn't have too lasting an effect on the AIA price.

[modandm]

AIA has broken its uptrend line on my chart which begins at 14 july confirming at 16 september and now crossing below the line today.

THERE IS SOME HUGE SELLING GOING ON MASSIVE VOLUME - 170m value already

I noticed there are some favourable broker reports out on the stock
by craigs and I believe by goldman sachs.
can't exactly remeber the details.

Be an interesting share to watch over the next week.

Be great to hear some views on AIA.

[Aeneas]

*DJ Infratil Says Sells Stake In Auckland International Airport

(MORE TO FOLLOW) Dow Jones Newswires
November 09, 2009 14:45 ET (19:45 GMT)
*DJ Infratil: Received NZ$1.84/Shr For 3.87% AIA Stake

(MORE TO FOLLOW) Dow Jones Newswires
November 09, 2009 14:46 ET (19:46 GMT)
*DJ Infratil: Will Post NZ$6M Gain On AIA In FY10

(MORE TO FOLLOW) Dow Jones Newswires
November 09, 2009 14:47 ET (19:47 GMT)
DJ Infratil Sells 3.87% Auckland International Airport Stake

WELLINGTON (Dow Jones)--New Zealand utilities investor Infratil Ltd. (IFT.NZ) said
Tuesday it has sold its 3.87% stake in Auckland International Airport Ltd. (AIA.NZ).
The 47.4 million shares were sold via an institutional placement at NZ$1.84 per share
and raised NZ$87.25 million, the company said in a statement.
Chief Executive Marko Bogoievski said the sale was consistent with recent capital
management initiatives and will provide additional flexibility to fund current and future
opportunities.
Infratil, in consortium with the New Zealand Superannuation Fund, is the exclusive
bidder for a stake in Royal Dutch Shell PLC's (RDSA, RDSB, RDSB.LN) refining and
retail assets in New Zealand.
Infratil said that since March 31, it has divested over NZ$215 million of non-core
assets and raised over NZ$98 million of new capital.
The sale will result in a NZ$6 million gain in the fiscal year ending March, 31, 2010,
Bogoievski said.
Auckland Airport shares closed Monday at NZ$1.93.

-By Simon Louisson, Dow Jones Newswires; 64-4-471-5990; simon.louisson@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important
business and market news, analysis and commentary:
http://www.djnewsplus.com/access/al?...mnV8by9Q%3D%3D. You can use this
link on the day this article is published and the following day.


(END) Dow Jones Newswires
November 09, 2009 15:11 ET (20:11 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.

Tuesday 10 November 2009 07:11:00.000 AEST

[modandm]

thanks we really needed that giant post...

very weak on very heavy turnover today. I think the comments from IFT are partly to blame. Obviously unloading a big stake like this is a sign IFT don't believe it to be a good investment. Im not sure what value IFT ever thought they were adding to SH's money anyway buying an asset such as AIA which is readily available for ordanairy investors to buy shares in... ditto TPW...not a fan of IFT tbh..

here is the key negative comment from IFT:

The sale of the airport stake was in line with Infratil's signal earlier this year that it was looking to take capital out of some relatively lower prospect investments, while looking to invest in more exciting opportunities, Brown said.

it did say though (perhaps just being polite - and a bit of an afterthought):

Infratil considered Auckland Airport to be a fantastic company and the new owners of the stake would do extremely well from the investment, but Infratil's management had thought it had something better to do with the money.

Perhaps IFT should just have stayed a bit quieter.... a bit embarassing imho

[ratkin]

Im not sure infratil selling shows a lack of confidence in Aucklandd airport.

It is more about Infratils debt

[COLIN]

Im not sure infratil selling shows a lack of confidence in Aucklandd airport.

It is more about Infratils debt

I think you're right, Ratkin.
When IFT initially bought their interest in AIA it was all part of a greater plan. Remember, Lloyd Morrison even got a seat on the Board. And the Canadians were at the gate, but Michael Cullen shooed them off.
But things have moved on, from those days. (By the way, does anyone know the current state of Lloyd's health? I sincerely trust he is making good headway.)

[Dr_Who]

Who bought IFT's stake?

Did it go to one investor or was it a bookbuild?

[COLIN]

Who bought IFT's stake?

Did it go to one investor or was it a bookbuild?

The announcement just said that they were sold "by way of an institutional placement." As nearly $90m was involved I doubt it would just be to one institution.

[macduffy]

The announcement just said that they were sold "by way of an institutional placement." As nearly $90m was involved I doubt it would just be to one institution.

I heard a comment ( sorry, can't remember who) that two brokers were involved in the placement. Likely then that more than one buyer.

[Dr_Who]

Hmmm.. no T/O potential... ok lets move on, nothing else to watch here.