KEY POINTS:
The latest offer from the Canadian Government pension fund for up to 49 per cent in Auckland Airport has won the crucial backing of Manukau Mayor Sir Barry Curtis but drawn a negative response from New Zealand First leader Winston Peters.
The Canada Pension Plan Investment Board yesterday
confirmed that it wanted to build a large minority stake in the airport with Manukau and Auckland City councils and other local investors keeping their shares in New Zealand hands.
The Canadians said they would limit their stake to no more than 49 per cent but were silent on how much they would offer shareholders. Before Dubai Aerospace Enterprise fronted in July with an offer of $3.80 a share, the Canadians were talking $3.10 a share for Australasia's second-busiest airport for international travellers.
The $2.6 billion offer by Dubai for a majority stake up to 60 per cent is on the brink of collapse after the group invoked a technical clause on Friday in their agreement to exit the deal. It also met ferocious opposition from ratepayers and politicians. Trade Minister Phil Goff said the Government agreed with the local opposition.
Sir Barry, who has vehemently opposed the Dubai deal, yesterday said he was philosophically warmer to the Canadian deal because it did not seek majority control and allowed Manukau to keep its 10.05 per cent stake.
"I would prefer if the interest taken by the Canadians was closer to 30 to 35 per cent than the 49," he said.
Sir Barry said he understood the Canadians were receptive to the Manukau and Auckland City councils having a director on the board, something that had been repelled by the current board.
Canadian pension fund senior vice-president Mark Wiseman said the deal allowed the councils to retain their investments and play a governance role.
"Our goal is to keep majority ownership largely in the hands of New Zealanders," he said.
"We think that is beneficial for the long-term stability of the asset."
But Mr Peters said any foreign-owned the sale, regardless of the percentage, lessened New Zealand control and resulted in profits and other benefits ending up in the back pockets of the foreign owners.
"The fact that Auckland Airport is attracting so many foreign bidders shows it is a very profitable asset with an excellent future ahead," Mr Peters said.
Prime Minister Helen Clark had little to say about the latest offer, except that she thought both city councils would want to keep their shareholdings "regardless of who else comes along to buy".
Mr Wiseman said the pension fund had been working on an offer for Auckland airport for 10 months. A team of seven people had completed due diligence but would not give a date for making a firm offer.
"I don't want to get pinned down but it won't be measured in days."
Who owns Auckland Airport
* Auckland City Council 12.8 per cent
* Manukau City Council 10.1 per cent
* UBS 8.2 per cent
* Commonwealth Bank of Australia 6.3 per cent
* Infratil/NZ Superannuation Fund 6.2 per cent
* Retail investors 25 per cent
* Other NZ institutions 11 per cent
* Other overseas institutions 20.5 per cent
Total 100 per cent
