The Auckland Future Fund has confirmed the sale of Auckland Council’s remaining shares in Auckland International Airport Limited (AIAL).
The sale, which was planned as part of the council’s Long-term Plan 2024-2034, saw the council’s 9.71% holding of AIAL shares sold at a price of at least $8.08 per share. This exceeds the Long-Term Plan 2024-2034 projection, which was for $7.89 after transaction costs, the Fund said in a statement.
The sale will return at least $1.31 billion for the Auckland Future Fund. Today’s share sale for the Auckland Future Fund, which is a council-controlled organisation, is part of the council’s financial strategy to protect and strengthen Auckland’s physical and financial resilience.
Auckland Future Fund Chair, Christopher Swasbrook says the sale will provide long-term benefits for the council, and the residents and ratepayers of Tāmaki Makaurau.
“The airport share sale enables the Auckland Future Fund to get underway with investing on behalf of Aucklanders and contributing funds to support council services,” says Mr Swasbrook.
“The transaction received multiple bids from global brokers and we are extremely pleased in the final outcome delivered by UBS. The Auckland Future Fund is now in a fantastic position for its next stage of investment.”
The funds realised from the sale of Auckland Council’s remaining AIAL shares will be invested by the Auckland Future Fund. The fund operates under the high-level direction of Auckland Council but through an independent structure, where the trustee’s board makes all key decisions.
Auckland Mayor, Wayne Brown said today’s share sale shows the council is listening to its ratepayers and delivering on its promises.
“Today’s sale is a positive for Auckland. We are getting on with delivering a future fund that will support Auckland in the long-term. The share sale means the council is more resilient to shocks that impact Auckland and also helps reduce the rates burden for our communities,” he said.
Liaison Councillor Christine Fletcher said the sale of the airport shares was a positive milestone for the Auckland Future Fund.
“The sale of the shares is a launchpad for the Auckland Future Fund and enables it to get on and work for Aucklanders and our ratepayers. The board has moved quickly and decisively to secure a sale that is extremely positive. It’s pleasing to see the future fund progressing as planned on behalf of Aucklanders,” she said.
Mr Swasbrook says that by diversifying Auckland Council’s major investments, the Auckland Future Fund that is now in place will help protect the Auckland region, but also provide long-term capital growth and cash distributions.
“This will help fund council services that benefit current and future Aucklanders, and reduce reliance on rates increases to fund Auckland services and infrastructure,” he said.
The Auckland Future Fund is estimated to provide the council with around an additional $40 million of cash returns per year from 2025/2026, while reducing its reliance on rates increases.
The Auckland Future Fund was independently advised on the sale by PwC and Simpson Grierson.
The final price will be confirmed at settlement on Friday.
