MAP Group says it has received an offer from the Ontario Teachers’ Pension Plan Board (OAPP) to take over the Canadian fund’s stake in Sydney Airport in exchange for stakes in Brussels and Copenhagen Airports.
The news saw MAP securities jump nearly 5% to $3.44. The securities hit a 52 week high of $3.45 in trading yesterday.
MAp said yesterday it had entered into exclusive negotiations following OAPP’s non-binding and highly conditional asset swap proposal.
"The proposal involves the potential sale of MAp’s non-controlling interests in Brussels Airport and Copenhagen Airports in exchange for OTPP’s 11.02 per cent interest in Sydney Airport and a net cash payment of $A850 million," MAP said in a statement.
"Should the Asset Swap Proposal proceed, MAp expects to pursue appropriate simplification of its structure to reflect its sole focus on the resulting interest of up to 85 per cent in Sydney Airport."
MAp currently holds 74% of Sydney Airport, 30.8% of Copenhagen Airport and 39% of Brussels Airport.
Adelaide-based investment company, Argo has upgraded its 2011 profit forecast.
In a statement to the ASX late yesterday Argo said it was expecting a rise in operating profit of "around 20% for the year to June 30.
Argo earned an operating profit of $142.8 million (before investment gains and losses) in the year to June 30, 2010, down 12.6% from the $163.4 million earned in the 2009 year.
A 20% increase from the 2010 figure would take operating earnings to around $170 million, and above the 2009 level.
Chairman Mr. Chris Harris said in the statement that "Argo is in good shape despite the current global economic conditions and uncertainties."
Argo also said that director Ian Johnson had decided to stand down from the Board.
"The Directors today accepted his resignation with regret and thanked him for his valuable contribution over the past 5 years.
"Mr. Harris said "Argo has greatly benefited from Ian’s wide industry experience, particularly in the resources sector. We wish him well in his retirement."
Mr Johnson has turned 70.
Mr. Harris said that shareholders will recall that at the time of Mr. Rob Patterson’s retirement as Managing Director at last year’s Annual General Meeting, it was announced that the Board intended to invite him to re-join Argo
The Board confirms that Mr. Patterson will be nominated for election as a non-independent, non-executive Director at the Company’s Annual General Meeting in October 2011, following a 12 month break to comply with the Company’s strong corporate governance principles.
Mr. Harris said "We are looking forward to again benefiting from Rob’s many years of fund management experience."
The Company’s full year financial results are expected to be released to the ASX on August 8.
