Auckland Council's stake in Auckland Airport is worth about $2.3 billion. Photo: LDR / Stuff / Stephen Forbes
Early preparations are being made to sell Auckland Council's stake in Auckland Airport, according to an Australian media report.
The Australian says investment banks will be interviewed and assessed over the next couple of weeks for the role of possible adviser to the council over the sale of its 18 percent stake in the airport.
It speculated a small Melbourne investment concern, Flagstaff, had been hired to advise on the selection of larger firms to handle any sale.
No formal decision has yet been made to sell the stake, but Mayor Wayne Brown has said a sale may be the only way to plug a $375 million hole in the council's budget and to lessen rate rises.
An analysis of submissions made on the annual budget, and a separate independent survey showed about 55 percent public support for the sale of at least some of the council's stake.
The Australian said the sale was likely to attract big international investment firms pitching their talents, including UBS, Macquarie and Goldman Sachs, while the likes of JP Morgan, Citi, and Credit Suisse - which had worked with the airport company before - would also be contenders.
Local investment firms Forsyth Barr, Jarden Securities and Craigs Investment Partners would also likely partner up with overseas contenders.
The airport company, which has been reporting increasing passenger numbers and the return of more foreign airlines, has unveiled plans for a $3.9b redevelopment of its terminals and other facilities, attracting strong reaction from airlines.
At current market prices, the council's 18 percent stake is worth about $2.3b.
