http://finance.news.com.au/common/story_page/0,4057,4208796%5E462,00.html
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Stadium shares put on a spurtBy Michael McGuire 27apr02
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STADIUM Australia shares surged to their highest level since September 1999 yesterday despite a report from accountants Ernst & Young that showed the value of the former Olympic stadium had fallen in the past year.
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Ernst & Young yesterday said the venue was worth $140 million as at June 30 last year. This is down from their previous valuation of between $142 million and $160 million at June 30, 2000.
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Stadium Australia cost about $650 million to develop, including the $80 million it has cost to reconfigure the venue since the Sydney 2000 Olympics.
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The reconfiguration includes the demolition of the northern and southern stands, reducing Stadium Australia's capacity from 110,000 to about 80,000.
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It is understood that Stadium Australia management will not seek a write-down of the stadium's value when the venue's audit committee meets on Thursday.
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However, an updated profit report is expected to be issued following the audit committee meeting to take into account the updated valuation.
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The Stadium Australia Trust's responsible entity, MTM Investment Management, said in a statement: "This valuation takes into account the recent Rugby World Cup outcome and incorporates the costs of completion of the current reconfiguration and new roofs."
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Stadium Australia shares rose as much as 18.5c yesterday to 60c. They closed at 55c, a 13.5c gain on the day, continuing a remarkable recovery in the once-despised stock.
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The Australian
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SAX
stadium australia group