After months of debate and consulting, Auckland Council finally sold its 7 per cent shareholding in Auckland Airport overnight. 

Auckland Council has confirmed the partial sell-down of Auckland International Airport Limited (AIAL) shares, as signalled in its budget 

The sale of shares, at an average share price of $8.11 per share, has returned $833 million, which the council said would be used to reduce debt. 

The deal meant Auckland Council now had a remaining shareholding of 11.08 per cent. 

Auckland Council Chief Executive Phil Wilson said it was a good outcome for the council and for residents and ratepayers. 

“When faced with an even greater budget gap as a result of three successive years of financial challenges brought about by the pandemic, flood and cyclone recovery, and inflation and interest rate hikes, the Governing Body agreed to sell-down a portion of the council’s shareholding in AIAL,” Wilson said. 

The share sale was confirmed in an Auckland Council statement at 8.30am. 

Auckland Council voted in June to sell 7 percent of its shares in Auckland Airport reducing its stake to 11.1 percent. 

The council initially proposed to sell its full 18.1 per cent stake in the airport as part of the mayor’s plan to reduce its debt and limit rate rises. 

The deal was predicted to see the council potentially get a windfall of $865 million towards repaying debt. 

The sale has been a controversial issue since it was put forward by Mayor Brown in his first budget. 

On August 31, Auckland Council entered into a block trade agreement with UBS New Zealand Limited. 

Under the deal, the council appointed UBS to manage and underwrite the sale of 66,053,498 shares at a price determined under the block trade agreement. 

The price was $8.10 per share. 

Previously, the council and Mayor Wayne Brown voted 14 votes to 6 with one abstention to approve all of the mayor’s first budget, which kicked off last year with savage cuts to community services, the arts and across the council group. 

Melbourne-based Flagstaff Partners is pocketing a secret fee of NZ$1.425 million to provide advice to the council on the sale process and analysis to ensure it goes ahead efficiently, cost-effectively and successfully. 

At the time of the sales, Mayor Wayne Brown was overseas with a trade delegation in India. 

- Jaime Lyth and John Weekes, NZH