Partical takeover offer for Auckland Airport scrapped after govt steps in
The New Zealand Government has blocked a partial takeover offer from a Canadian pension fund manager for 40% of Auckland International Airport, because it offers no benefit to New Zealand.
In a joint media statement, Land Information Minister David Parker and Associate Minister of Finance Clayton Cosgrove stated that on the basis of the information provided they were ‘not satisfied that the proposed investment will, or is likely to, benefit New Zealand’.
The company, which is listed on the both the Australian Securities Exchange (ASX: AIA) and New Zealand Exchange (NZX: AIA) slumped in trading on both the exchanges today in response to the announcement.
In Wellington, the airport’s shares plunged 22 cents to NZ$2.13.
Shares at the Australian-listed Auckland International also fell, closing 20 cents or 10% down at $1.80.
Chairman of Auckland Airport, Tony Frankham said the board would focus on moving business forward following the rejection of CPPIB’s application.
“Earlier today, Ministers Parker and Cosgrove confirmed that CPPIB’s application under the Overseas Investment Act had been declined.
“As this final condition has not been met, CPPIB’s offer will not proceed. Shareholders who accepted the offer will now be free to trade their shares,” he said.
Mr Frankham said that, while the decision of the Ministers is not consistent with the wishes of a majority of Auckland Airport shareholders who voted to approve the CPPIB takeover, the board nevertheless needed to focus on moving the business forward.
“Directors will re-consider the issues of the company’s capital structure and the prospects for introducing a new cornerstone shareholder that could add strategic value,” he said.
Mr Frankham said that excellent progress was being achieved on the implementation of the company’s Masterplan 2025 which is designed to enhance the company’s business and create shareholder value over the longer term.
