A Canadian offer to buy 49 per cent of Auckland International Airport is offering 10c a share more than the failed Dubai offer.
A Canadian offer to buy 49 per cent of Auckland International Airport is offering 10c a share more than the failed Dubai offer.
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Auckland International Airport yesterday received more detail of the offer by the Canada Pension Plan Investment Board (CPPIB) for a cornerstone stake in the company.
In a notice to the NZX, Auckland Airport confirmed it had a discussion paper from CPPIB on the offer for up to 49per cent of the company.
The airport board said it would consider the discussion paper and seek advice on its merits before making a recommendation to shareholders.
On Wednesday CPPIB surprised the board by going public with the pricing details of its proposed offer before a meeting to outline the proposal to the airport directors.
CPPIB said its offer would give shareholders three options.
The first is a cash offer of $3.70 a share, the other two involve a mix of cash and shares in a new airport company which would be structured to "provide enhanced returns while preserving the investment grade rating".
It said the second two options would provide value up to $3.90 a share - 10c a share more than the failed offer by Dubai Aerospace.
Shares in Auckland Airport yesterday closed down 1 cent at $3.24.
The trickle of information had infuriated fund manager Simon Botherway, of Brook Asset Management, who said the release of partial information about a proposed merger deal "was cavalier and demonstrated a disregard for the sound functioning of the NZ listed equity market".
Bloomberg yesterday reported Auckland City mayor Dick Hubbard saying that he was comfortable with CPPIB owning up to 49 per cent of the airport.
However, he said the council would not be selling any of its stake and confirmed it had not been approached by the Canadians.
Auckland City owns a 12.75 per cent stake in the airport and Manukau City Council owns another 10.5 per cent.
