Trading Halt of Auckland International Airport Shares

(Reuters) – Trading in the shares of Auckland International Airport was halted on Wednesday after the airport operator announced it was notified that Auckland Council had initiated the process to sell its remaining 9.71% stake in the company.

"Auckland Future Fund Trustee Limited has invited a relatively large group of brokers to submit offers for a parcel of 163,231,446 shares in Auckland Airport," the company stated in a filing to the New Zealand stock exchange.

Based on Auckland Airport's closing price of NZ$8.08 on Tuesday, the stake is valued at approximately NZ$1.32 billion ($776.03 million).

Last year, Auckland Council reduced its stake in the airport operator by about 7% after selling shares worth NZ$835.9 million.

"We believe that the stake sale could be seen as a clearing event for investors to focus more on the operating and fundamental outlook for Auckland Airport," Citi analysts noted.

($1 = 1.7010 New Zealand dollars)