(Reuters) – Auckland International Airport in New Zealand said on Monday it will undertake a NZ$1.4 billion ($861.8 million) capital raising for a planned capital investment programme.
The capital raising comprises a NZ$1.2 billion underwritten placement and an unsubscribed retail offer to raise up to NZ$200 million, the company said.
The placement will be made at a price of NZ$6.95 per share, representing a 7.8% discount to Auckland International Airport's last closing price of NZ$7.54 on Friday.
Proceeds from the capital raising will be used to reduce net debt and provide flexibility to fund its planned capital expenditure programme over the remaining years of Pricing Event 4 (PSE4) and PSE5, Chief Executive Carrie Hurihanganui said.
The domestic aircraft terminal project is a key part of Auckland International Airport's integration programme and the wider NZ$6.6 billion aeronautical capital investment programme over PSE4 and PSE5 to 2032.
The airport operator also signed an $800 million contract with Downer EDI's unit on Monday, Hawkins (NASDAQ:) Limited, to manage the construction and delivery of a new domestic aircraft terminal.
The terminal will bring together domestic and international services under one roof.
The contract, part of the construction of a new NZ$2.2 billion domestic terminal, will create around 2,500 jobs for the country at peak, the company said.
Shares in the airport facilities provider were suspended on Monday and will resume trading on Wednesday or after completion of the placement, it said in a statement.
($1 = 1.6244 New Zealand dollars)
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