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General statement of intention from CPP Investment Board regarding Auckland International Airport Limited

Auckland Airport

Wednesday 7 November 2007, 11:14AM

By Auckland Airport

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AUCKLAND

Auckland International Airport Limited (Auckland Airport) confirms that it has today received the below statement of intention from CPP Investment Board (CPPIB) regarding Auckland Airport.

The statement refers to an intention by CPPIB to make an all cash partial takeover offer to all shareholders of Auckland Airport for 40% of the shares at a price of NZ$3.6555 per share. CPPIB has advised that it expects to file a formal takeover notice under the Takeovers Code as soon as practicable. A copy of that takeover notice will be released by Auckland Airport as soon as it is received.

The Board of Auckland Airport will evaluate the takeover offer once it is received and advise shareholders accordingly. In the meantime, the directors recommend that shareholders await further details with respect to the proposed offer. 

www.cppib.ca

General statement of intention from CPP Investment Board regarding Auckland International Airport Limited CPP Investment Board gives shareholders the ability to assess CPPIB’s proposal for themselves AUCKLAND, NZ (November 7, 2007):

The CPP Investment Board (CPPIB) today announced its intention to make a partial takeover offer to all shareholders of Auckland International Airport Limited (AIAL).

If successful, the offer would increase CPPIB’s shareholding in AIAL to 40%, which CPPIB believes would then enable its amalgamation proposal to be put to shareholders for their consideration.

“In the past few days, we have received strong encouragement from AIAL 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 AIAL stakeholders. As a result, we have decided to take steps to enable CPPIB’s proposal to be put directly to shareholders,” said Mark Wiseman, Senior Vice President - Private Investments for CPPIB.

“CPPIB’s preferred course of action was for the AIAL Board to put our 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.

The AIAL Board decided on October 31 to cease discussions between CPPIB and AIAL, to reject the CPPIB proposal, thereby not disclosing all of the details of the proposal to shareholders for their consideration. CPPIB maintains its desire to present its amalgamation proposal to AIAL shareholders and believes the most appropriate option to effect this is by doing the following:

•Making an all-cash partial takeover offer of NZ$3.6555 per share to take its holding to 40 per cent of the shares of AIAL. This cash offer reflects a 63% premium to the six month pre-takeover speculation VWAP (volume weighted average price) for AIAL shares.

The price is equivalent to the $3.70 cash consideration option referred to in CPPIB’s announcement of 19 September, less the 4.45 cents per share dividend that was paid by AIAL on 19 October.

As the offer will not result in CPPIB holding or controlling more than 50% of the voting rights in AIAL it will be subject to approval being obtained from AIAL shareholders in accordance with Rule 10(1)(b) of the Takeovers Code.

•CPPIB will take all reasonable steps within its control to ensure that as soon as possible after successful completion of the offer, the CPPIB amalgamation proposal will be placed in front of shareholders.

As soon as practicable, CPPIB expects to be able to give AIAL a formal takeover notice under the Takeovers Code.

That notice will have attached to it the full terms and conditions (including a condition making the offer subject to approvals under the Overseas Investment Act and Regulations) of the proposed partial takeover offer.

- ends - For more information about the CPP Investment Board, visit www.cppib.ca