Sydney Airport's higher than expected sale price augurs well for Auckland City Council, which is selling its 25.7 per cent stake in Auckland International Airport, worth $470 million at the current share price.
The council is working with its advisers on the best way to sell its stake. Council finance director
David Rankin said Sydney's price indicated the high level of interest in airports in this part of the world.
ABN Amro analyst James Miller said the fact the consortium was financing part of the deal by selling units in a new retail trust indicated an appetite for the shares by private investors, which could have positive connotations for the council. Another analyst said a negative for the council may be a perception that because the consortium paid more than expected, members such as Macquarie Airports might be less likely to bid for the council's shares.
The big difference between Sydney and Auckland is that the buyer of the council's quarter share won't gain full control of the airport, and won't be able to put in place the kind of financing structures it might want to extract greatest value from its investment.
