The CPP Investment Board(CPPIB)intends to make a partial takeover offer to all shareholders of Auckland International Airport Limited(AIAL).
If successful, the offer would increase CPPIB’s shareholding in AIAL to 40%, which CPPIB believes would then enable its amalgamation proposal to be put to shareholders for their consideration.
“In the past few days, we have received strong encouragement from AIAL shareholders that they would like the opportunity to consider our proposal directly,” says Mark Wiseman, senior vice-president – private investments for CPPIB. “Like us, they believe that our proposal is one that is in the interests of all AIAL stakeholders. As a result, we have decided to take steps to enable CPPIB’s proposal to be put directly to shareholders.”
He adds that the step CPPIB is now taking in no way detracts from its desire to work with the company and its management team to further the growth and development of the airport’s business.
Last week, the AIAL board decided to cease discussions between CPPIB and AIAL and to reject the CPPIB proposal.
The CPPIB is proposing an all-cash partial takeover offer of NZ$3.6555 per share to take its holding to 40% of the shares of AIAL. This cash offer reflects a 63% premium to the six month pre-takeover speculation volume weighted average price for AIAL shares.
AIAL says its board will evaluate the takeover offer once it is received and advise shareholders accordingly.
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