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A Canadian firm has launched another partial takeover bid for Auckland International Airport (AIA).
AIA's board rejected an earlier bid by Canada Pension Plan Investment Board late last month.
A spokeswoman today confirmed the company's latest bid was for 40 per cent cash at $3.6555 per share.
Its previous bid for between 39-49 per cent was rejected by a majority of the AIA board because it would have increased the company's risk exposure by tripling debt.
That bid valued the entire company at $4.8 billion while today's bid values it at $4.45 billion.
CPP said today's bid was the equivalent of the earlier price of $3.70 if a 4.45 cent dividend was taken into account. The spokeswoman said the bid price was at a 63 per cent premium on AIA's price before Dubai Aerospace Enterprise's (DAE) made its failed bid in July.
Yesterday, it was revealed The New Zealand Superannuation Fund and infrastructure investor Infratil had increased their combined stake in Auckland Airport to just under 8 per cent from around 6 per cent.
That stake will make it more difficult for a foreign buyer to get control of the airport without dealing directly with Infratil managing director Lloyd Morrison who is attempting to win a board seat.
They increased their stake by 1.8 per cent - or about 22 million shares - in the six days following the airport board pulling the plug on sale talks with CPP.
The NZ Super Fund uses private institutions to buy and hold shares on its behalf. The increase in its holding was declared yesterday and showed it now owns a 5.07 per cent stake - held on its behalf by Barclays Global Investors, AMP Capital Investors, Brook Asset Management, Smartshares and Morrison & Co. (the investment company of Lloyd Morrison, who also controls Wellington-based Infratil).
CPP said if its latest bid was successful it would then enable its amalgamation proposal to be put to shareholders for consideration.
"In the past few days, we have received strong encouragement from AIA shareholders that they would like the opportunity to consider our proposal directly.
"Like us, they believe that our proposal is one that is in the interests of all AIA stakeholders.
"As a result, we have decided to take steps to enable CPP's proposal to be put directly to shareholders," CPP senior vice president Mark Wiseman said.
CPP said its preferred course was for the AIA Board to put its proposal in front of its shareholders.
"The step we are now taking in no way detracts from our desire to work with the company and its management team to further the growth and development of the airport's business," Mr Wiseman said.
When the AIA board rejected the first proposal it did not disclose all details of the CPP bid.
Because it is a partial bid, it will be conditional on the approval of over half the AIA shareholders.
CPP said that if successful it would do its utmost to place the amalgamation proposal before shareholders as soon as possible.
Also it would as soon as practicable, give shareholders its formal takeover notice.
AIA shares closed yesterday on $2.91 - 25 per cent below today's offer price.
AIA shares were placed on a trading halt by the Stock Exchange.
AIA was not immediately available to comment.
When the trading halt was lifted, AIA shares shot up 12 per cent, or 35 cents, to $3.26.
CPP said if its bid was successful, the company would still be more than 50 per cent owned.
Auckland City owns 12.75 per cent and Manukau City owns 10.5 per cent.
UBS owns 6.6 per cent, Commonwealth Bank of Australia 6.3 per cent and Macquarie 4.98 per cent.
AIA holds its annual meeting on November 20 where a battle is expected for board seats with Auckland City, Manukau and Infratil all putting up nominees.
- NZPA