Auckland International Airport chairman John Maasland. Photo / Herald on Sunday
Auckland International Airport chairman John Maasland. Photo / Herald on Sunday
KEY POINTS:
Auckland International Airport chairman John Maasland says he is not surprised by the strong public reaction to the Dubai Aerospace bid to buy a controlling stake in the airport.
"There was bound to be a bit of concern voiced," Maasland said yesterday.
Dubai Aerospace Enterprise has made a$3.80 per share merger proposal that would see it pay up to $2.6 billion for as much as 60 per cent of the airport.
The plan - which has the support of the board - needs 75 per cent shareholder approval.
Auckland City and Manukau City own 23 per cent of the airport between them, making the future of the deal highly politicised.
Most market analysts agree the value of the deal looks good on paper. But some have advised shareholders to sell on-market because they believe adverse public reaction may sink the deal.
This was not a straightforward transaction and shareholders would need time to digest it, Maasland said.
"One has to accept people will have concerns but we have to work through it," he said. "Let's get the issues out in front now and we'll work through those."
Shareholders will vote on the deal at the annual meeting in November.
"I accept people feel strongly about things being bought and held overseas and particularly there are feelings about a Middle Eastern operations in the current environment," he said.
But ultimately the Government always had control from a national interest perspective because it held all the regulatory power, he said.
"They can't tow it away".
The airport's board has confirmed that it has had discussions with eight parties since initial interest by Macquarie was made public in May.
At least three other parties are believed to be still in the hunt - Canada Pension Plan, a Macquarie Bank led consortium and Australia Pacific Airports Corporation (APAC)
APAC yesterday confirmed reports in the Business Herald that it was an interested party.
"We don't have an offer in but it is under consideration," an APAC spokesman told Reuters.
Auckland Airport shares closed on down 1c at $3.38 yesterday.
