Ann: CAPREC: AIA: AIAL Auckland Airport announces

• Release Date: 28/11/13 10:36
• Summary: CAPREC: AIA: AIAL Auckland Airport announces capital return
• Price Sensitive: No
• Download Document  4.41KB

					AIA
28/11/2013 08:36
CAPREC

REL: 0836 HRS Auckland International Airport Limited

CAPREC: AIA: AIAL Auckland Airport announces capital return

Auckland Airport has announced today that it intends to seek shareholder and
court approval to return $454 million of capital to its shareholders.
Sir Henry van der Heyden, Auckland Airport's Chair, says the company is
focused on being fast, efficient and effective as part of its five-year
business strategy, Faster, Higher, Stronger.

"To be efficient, we need to effectively manage our operating costs, our
capital expenditure and have an efficient mixture of equity and debt. In
order to achieve this the Board of Directors has proposed to return capital
to our shareholders," says Sir Henry.

"The Company's strong performance over the past five years, including our
successful property development and retail businesses and our investments in
other airports, means we currently have a less efficient mix of equity and
debt than we had in the past."

"By returning capital to our shareholders we can improve our balance of
equity and debt, returning to levels achieved in 2011."

"Auckland Airport is committed to providing critical airport infrastructure
for New Zealand and is currently investing in an important upgrade to the
domestic terminal as well as planning to deliver our 30-year vision of the
'airport of the future'. The Company remains well placed to deliver on these
developments even with the return of capital."

"We value the funding flexibility provided by a stable A- credit rating and
the capital return should help us retain such flexibility. This is important
if we are to continue to invest in future growth opportunities for the
benefit of our customers, the city and New Zealand."

"Auckland Airport will seek court and shareholder approval to cancel 1 in 10
of its shares. The amount each shareholder will receive per share cancelled
will be $3.43, approximately equal to the closing share price of Auckland
Airport shares immediately prior to this announcement."

"It is important that every shareholder understands that the return of
capital will not alter their proportionate shareholding in the company or
their proportionate voting and distribution rights."

"A portion of the capital returned to shareholders will be treated as a
dividend for tax purposes and will receive imputation credits at the company
tax rate of 28%. The Company will not be paying an interim dividend to
shareholders for the 2014 financial year."

The capital return will be implemented by way of a scheme of arrangement to
be approved by shareholders at a special meeting and by the High Court under
Part XV of the Companies Act 1993.

"With the approval of the Court and our shareholders we hope to have
completed the return of capital mid-April 2014."
More information is available online at:
http://www.aucklandairport.co.nz/Corporate/Investors

Ends

Key facts about the capital return:
- $454 million total cash payment to shareholders to take place in mid-April
2014.
- Cancellation of 1 in 10 shares, with a payment of $3.43 for each share
cancelled.
- Capital return to take place by way of a High Court approved scheme of
arrangement with shareholder approval being sought in February 2014. If
approved by 75% or more of voting shareholders, final High Court approval is
expected in March 2014.
- 40% of payment as a capital return for tax purposes, with the remaining 60%
treated as a taxable dividend which will be fully imputed at a 28% tax rate.
- The capital return will not alter shareholders' proportionate shareholding
in the Company or future voting and distribution rights.
- Auckland Airport continues to target a stable A- long term corporate credit
rating from Standard & Poor's.
Example of impact on shareholder:

 Before After
Shares held 10,000 9,000
Share price on close of business before announcement $3.43
Assumed share price after the capital return  $3.43
Value of shares $34,300 $30,870
Capital return cash payment to shareholders(FN1)  - $3,430
Value of shares and capital return (FN1) $34,300 (FN2) $34,300(FN3
Percentage ownership 0.000756% 0.000756%

FN1 Subject to applicable withholding taxes
FN2 Shares only
FN3 Cash (before tax) and shares

For further information please contact:

Media -
Simon Lambourne
+64 9 255 9089
[email protected]

Investors -
Campbell De Morgan
+64 9 255 9029
[email protected]
End CA:00244405 For:AIA    Type:CAPREC     Time:2013-11-28 08:36:54