The directors of Auckland Airport unanimously recommends that shareholders should sell their shares into the takeover offer from the Canada Pension Plan Investment Board (CPPIB).
However, directors are not unanimous on whether shareholders should vote in favour or against CPPIB acquiring up to 40% of the company.
A majority of the board recommends shareholders should vote against CPPIB acquiring 40% of Auckland Airport as they believe the shares in the company are likely to be worth more longer term without CPPIB involvement.
Still, two directors believe that stockholders should vote in favour of the offer as the price of NZ$3.65555 per share offered by CPPIB is unlikely to be available to shareholders in the foreseeable future. The stock closed at $2.83 on Monday.
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For the transaction to proceed, the Takeovers Code requires a majority of shareholders who vote to approve CPPIB acquiring a 40%.
If this approval is not gained, the bid cannot proceed, regardless of the number of shares offered for sale.
“All directors acknowledge that the market conditions have changed significantly since this bid was announced and this key factor has given rise to the need for directors to update their earlier recommendations,” says Auckland Airport’s chairman, Tony Frankham. “We all agree that shareholders would be unwise not to realize part of their holding at the favourable partial offer price if the partial offer receives approval to proceed.
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