The Canada Pension Plan Investment Board has formally launched its offer for a 40% interest in Auckland International Airport Limited(AIAL).
The all-cash bid of NZ$1.8 billion, or $3.6555 per share, was made before the New Zealand Stock Exchange opened on Friday.
The takeover offer is a 37% premium over AIAL’s trading price prior to pre-takeover speculation and a 20% premium to Thursday’s closing price.
It is expected to be mailed to shareholders on or about December 14 and will remain open for a period of 90 days.
“This offer is highly attractive for shareholders when compared to AIAL’s past trading prices, transaction and trading multiples and analyst valuations,” says Mark Wiseman, the CPPIB’s senior vice-president – private investments. “We are confident that shareholders will recognize the value in this offer and accept it.”
The CPPIB initially approached AIAL in June, subsequently undertook detailed due diligence, and has had comprehensive discussions with the management and board of the company.
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“Through our partial takeover and proposed amalgamation strategy,” he adds, “we will work with management to provide ongoing support for the airport’s long-term master plan and continued investment to improve the airport’s physical assets by initially focusing improvements on property development, route development and retail offerings.”
AIAL recommends that shareholders await the company’s assessment of the offer, including the board’s recommendation and the independent advisor’s report, before taking further action. The company has also asked Credit Suisse and First NZ Capital “to actively solicit” takeover offers.
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