WELLINGTON, Jan 11 (Reuters) - Auckland International Airport Ltd, New Zealand's main gateway, has bought a stake in an Australian airport operator for A$132.8 million ($123 million), as it seeks to expand beyond its core market.
The airport said on Monday it hoped the 24.5 percent stake in North Queensland Airports, which runs the Cairns and Mackay airports in the popular tourist region of north Queensland state, would act as a stepping stone to the high-growth tourism markets of Asia. Auckland Airport handles around 70 percent of New Zealand's international arrivals and departures, about 13 million passengers a year, and has cited international expansion as the key to future growth. 'This is a significant milestone for Auckland Airport and for our strategy to grow beyond our core business in Auckland,' Chairman Tony Frankham said in a statement.
Shares in the company, which is about 23 percent owned by two Auckland local bodies, last traded down 2.9 percent at NZ$2.02, in a broader market down 0.2 percent.
Cairns is Australia's seventh busiest airport, with annual passengers of about 3.7 million, while Mackay handles about 1 million people per year. Cairns is the closest airport to tourist attractions such as the Great Barrier Reef and the Wet Tropics rainforests.
Auckland Airport Chief Executive Simon Moutter said New Zealand has underperformed Australia in getting a share of the Asian market, and with the Australia stake Auckland Airport would seek more international connections with New Zealand.
The company said in December a rise in passenger numbers would see net profit for the 2010 year at the top end of a NZ$93 million to NZ$100 million range.
Auckland Airport said it would fund the purchase through a mixture of debt and equity.
($1=A$1.08)
(Reporting by Adrian Bathgate)
((adrian.bathgate@reuters.com; +64-4-4714233; Reuters Messaging: adrian.bathgate.reuters.com@reuters.net)) Keywords: AUCKLANDAIRPORT/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The airport said on Monday it hoped the 24.5 percent stake in North Queensland Airports, which runs the Cairns and Mackay airports in the popular tourist region of north Queensland state, would act as a stepping stone to the high-growth tourism markets of Asia. Auckland Airport handles around 70 percent of New Zealand's international arrivals and departures, about 13 million passengers a year, and has cited international expansion as the key to future growth. 'This is a significant milestone for Auckland Airport and for our strategy to grow beyond our core business in Auckland,' Chairman Tony Frankham said in a statement.
Shares in the company, which is about 23 percent owned by two Auckland local bodies, last traded down 2.9 percent at NZ$2.02, in a broader market down 0.2 percent.
Cairns is Australia's seventh busiest airport, with annual passengers of about 3.7 million, while Mackay handles about 1 million people per year. Cairns is the closest airport to tourist attractions such as the Great Barrier Reef and the Wet Tropics rainforests.
Auckland Airport Chief Executive Simon Moutter said New Zealand has underperformed Australia in getting a share of the Asian market, and with the Australia stake Auckland Airport would seek more international connections with New Zealand.
The company said in December a rise in passenger numbers would see net profit for the 2010 year at the top end of a NZ$93 million to NZ$100 million range.
Auckland Airport said it would fund the purchase through a mixture of debt and equity.
($1=A$1.08)
(Reporting by Adrian Bathgate)
((adrian.bathgate@reuters.com; +64-4-4714233; Reuters Messaging: adrian.bathgate.reuters.com@reuters.net)) Keywords: AUCKLANDAIRPORT/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.