Is there a stockbroker in the house?

[Spuds1234]

Seriously, Is there?

I have a few questions and I would much appreciate it anyone could take a look and offer some advice.

I have a few shares in Auckland Airport that were gifted to me about ages ago.

As some of you may know, it would seem to me that Auckland Airport will be sold to Dubai AeroSpace Enterprises.

If this goes ahead I can either sell my shares for cash of $3.80 per share (with includes dividend payments of 7 cents per share), subject to Dubai Aerospace Enterprises shareholding not exceeding 60%.

My other option is to exchange my Auckland Airport shares for a combination of cash ($2.41 per share including dividend payments of 7 cents per share) and a new form of equity instrument called a stapled security in the new company Auckland Airport Limited. I can also decided to get more shares and less cash if I want to.

I have done a bit of Googling and found out that a Stapled Security is a share and a loan note.

My questions are, what is a loan note?

And is it worth keeping some shares with the new company, or should I just look at putting my money into some other kind of investment?

Thank you.

[tri boy]

Contact Forsyth Barr in Christchurch. Good broking house with ALOT of experience.

[Skyryder]

Not too sure how much money you have invested but I think what your are talking about is a CLN. A construction loan note. It's a short-term obligation in the form of a note, used for the funding of construction projects such as housing developments. In most cases, the note issuers will repay the note obligation by issuing a longer term bond and using the proceeds from the bond to pay back the note.

This type of financing is most often seen at the municipal level: for example, a large city might use a construction loan note to finance a large housing project to meet the demands of its growing population. It sounds as if Auckland wants to do some redevelopment. I'd be looking to what what they have in mind and future earning projections based on their redeveloment and the costs associted with this.

Go to a Stock Broker. That's the best advice I can give.



Skyryder