NZ’s Auckland International Airport to raise $861.8m, signs contract to build new terminal By Reuters

(Reuters) – New Zealand’s Auckland International Airport said on Monday it would undertake a NZ$1.4 billion ($861.8 million) capital increase for a planned capital investment programme.

The capital raising comprises a $1.2 billion underwritten placement and an unsubscribed retail offering to raise up to $200 million, the company said.

The placement has an issue of $6.95 per share, representing a 7.8 per cent discount to Auckland International Airport’s last closing price of $7.54 on Friday.

Proceeds from the capital increase will be used to reduce net debt and provide flexibility to fund its planned capital investment program in the remaining years of Pricing Event 4 (PSE4) and PSE5, said Chief Executive Carrie Hurihangans.

The domestic aircraft terminal project is a key part of Auckland International Airport’s integration program and the wider $6.6 billion aviation capital investment program for PSE4 and PSE5 to 2032.

The airport operator also signed an $800 million contract with Downer EDI unit on Monday, Hawkins (NASDAQ:) Limited, to manage the construction and delivery of a new domestic aircraft terminal building.

The terminal will bring domestic and international services under one roof.

The contract, part of a new NZ$2.2 billion domestic terminal, will create about 2,500 jobs for the country at peak, the company said.

Shares in the airport facilities provider were halted on Monday and will resume trading on Wednesday or after the placement is completed, it said in a statement.

($1 = NZ$1.6244)