Canadian fund Pension Plan Investment Board discloses details of its bid for Auckland International Airport
19 Sep 2007
Canadian pension fund Canada Pension Plan Investment Board (CPPIB) confirmed Wednesday 19 September that it would make a bid for a major stake in Auckland International Airport Ltd (AIAL), the company that owns Auckland airport, New Zealand's air transport hub.
CPPIB said its bid could value AIAL at up to NZ$4.76 billion ($3.45 billion). It said it would discuss its bid for a significant minority stake with the AIAL board on Thursday. Earlier this month, the pension fund had said it would seek up to 49-per cent of the airport.
Disclosing the details of its bid for the first time, CPPIB said it would offer NZ$3.70 ($2.63) a share in an all-cash offer. Two other options, involving a combination of cash and new securities, could value AIAL at up to NZ$3.90 ($2.77) a share, it said.
Earlier this year, AIAL had turned down the pension fund's offer of NZ$3.10 ($2.20) a share, when CPPIB had approached key shareholders with an offer to buy at that price.
Dubai Aerospace Enterprise (DAE) earlier this month abandoned its controversial bid to take a majority stake in the face of widespread opposition to 'foreign control' of the airport. The United Arab Emirates (UAE)-based aerospace and aviation company had offered to take a stake of between 51 and 60 per cent for up to NZ$2.6 billion ($1.85 billion).
CPPIB handles investments for the Canada Pension Plan, which has 16 million members and gross assets of C$120.5 billion ($118.9 billion). It had said its bid would preserve substantial levels of local ownership of the airport, which handles 70 per cent of international arrivals in New Zealand.
