Auckland Council Investments Limited (ACIL) will purchase the remaining 56 percent of shares in Auckland Film Studios Ltd to become a 100 percent shareholder in the company.
The decision was approved at last week’s Auckland Council governing body meeting and the agreement will be settled tomorrow (4 August).
It will see ACIL, which is a Council Controlled Organisation, purchase the 55.6 percent shareholding currently owned by Tony Tay Films Ltd, adding to its current 44.4 percent shareholding. Tony Tay Films Ltd is currently in receivership.
ACIL will purchase the stakeholding at a significant discount to the value of underlying assets. The purchase will cost $1.5 million.
ACIL Chief Executive, Gary Swift says the purchase is an opportunity to take control of the company and generate more sustainable business opportunities with film companies in New Zealand and overseas.
“Having a 100 percent stakeholding in the company means we now have a significant opportunity to improve strategic growth and have more consistent turnover – it’s an exciting opportunity,” he says.
“In the past the studio has provided dividends to Waitakere City Council, generated employment and boosted economic growth in west Auckland. We’re aiming to increase these dividends and sustain business growth over the long-term.
“These dividends are ultimately paid to Auckland Council and help to reduce rates for ratepayers,” says Gary.
Background information on Auckland Film Studios
Auckland Film Studios Limited is the largest film studio in New Zealand. The 10.5 acre site has five sound stages with 5,251 square meters of studio floor space.
The studios cater to a wide clientele from advertisers and television series such as Xena: Warrior Princess to Hollywood movies including The Lion, The Witch and The Wardrobe, Legend of the Seeker, The Chronicles of Narnia: Prince Caspian and The Warrior’s Way featuring Kate Bosworth and Geoffrey Rush.
Auckland Film Studios Limited was developed at the old Apple and Pear Board site on Hickory Avenue, Henderson and purchased by Waitakere City Council in 2002.
Background information on ACIL
Auckland Council Investments Limited (ACIL) is a Council Controlled Organisation (CCO) of Auckland Council. Its role is to manage Auckland Council’s major equity investments.
The value of investments that ACIL owns and/or manages is approximately $1.7 billion. In addition to the investment in POAL it owns 22.45% of the shares in Auckland International Airport Limited and 44% of the shares in Auckland Film Studios Limited. It also manages a diversified financial assets portfolio for the Council.
The return on these investments, in the form of dividends received by ACIL on behalf of Auckland Council, are invested by the council into activities that help to make Auckland the world’s most liveable city.