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Nothing as yet according to AIA. Interesting trading has been going on with IFT also. I wonder if they are related.
AIA
19/09/2007
GENERAL
REL: 1005 HRS Auckland International Airport Limited
GENERAL: AIA: Announcement by CPP Investment Board
Auckland International Airport Limited ("Auckland Airport") is aware that CPP
Investment Board ("CPPIB") has made an announcement in respect of its
intentions in relation to Auckland Airport. A copy of the announcement
follows.
No proposal has been received by Auckland Airport from CPPIB. Auckland
Airport will continue to keep shareholders fully informed of developments on
a regular basis.
Should a proposal be received from CPPIB, the directors of Auckland Airport
will consider the proposal and obtain expert advice on its merits before
being in a position to make a recommendation to shareholders. This could
take some time.
ends
For further information, please contact:
Lucy Powell
Head of Communications
Ph: +64 21 995 710
CPP Investment Board's Intentions in Relation to Auckland International
Airport Limited
AUCKLAND, NZ (September 19, 2007) In response to continued speculation and
market activity, the CPP Investment Board today confirmed that it intends to
submit a proposal under which it would acquire a significant minority stake
in Auckland International Airport Limited (AIAL).
Following on from the statement made on September 3, the CPP Investment Board
confirms that it has formulated a framework for an amalgamation that it will
discuss with AIAL at a meeting scheduled for September 20.
The framework for amalgamation formulated by the CPP Investment Board would
provide shareholders with the choice of three options, one of which will be
an all cash option of $3.70 per share. The other two options, which will
provide a value of up to $3.90 per share, would involve a combination of cash
and the issue of new securities that provide enhanced returns
whilst preserving the investment grade rating of AIAL. Each of these three
options could be subject to some scaling, depending on shareholder take-up of
the various options.
The CPP Investment Board also advises that it has received committed
financing in respect of its proposal.
CPP Investment Board
The CPP Investment Board invests the funds not needed by the Canada Pension
Plan to pay current benefits on behalf of 16 million Canadian contributors
and beneficiaries. As at June 30, 2007, the CPP Fund was C$120.5 billion
(NZ$162.5 billion). In order to build a diversified portfolio of CPP assets,
the CPP Investment Board is investing in publicly-traded stocks, private
equities, real estate, inflation-linked bonds, infrastructure and fixed
income.
The CPP Investment Board is accountable to the Canadian Parliament and the
federal and provincial finance ministers.
Based in Toronto, the CPP Investment Board is governed and managed
independently of the Canada Pension Plan and at arm's length from
governments.
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Hard to see council selling their holdings.
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Canada Pension Plan proposes three options to buy AIAL shares
--------------------------------------------------------------------------------
By NZPA
Wednesday 19th September 2007
The Canada Pension Plan Investment Board says it has come up with three options for acquiring a significant minority stake in Auckland International Airport Ltd.
They include an all cash option of $3.70 per share, the CPP board said today.
The other two options, which would provide a value of up to $3.90 per share, would involve a combination of cash and the issue of new securities that provided enhanced returns while preserving the investment grade rating of AIAL.
The CPP Investment Board today said it was confirming that it intended to submit a proposal under which it would acquire a significant minority stake in AIAL.
Following a statement this month, it confirmed it had formulated a framework for an amalgamation that it would discuss with AIAL at a meeting scheduled for tomorrow, CPPIB said.
It said it also advised that it had received committed financing in respect of its proposal.
Each of its three options for buying shares could be subject to some scaling, depending on shareholder take-up of the various options, CPPIB said.
AIAL shares were up 31c to $3.35 about 10.30am today.
AIAL today said it had not received a proposal from CPPIB.
"Should a proposal be received from CPPIB, the directors of Auckland Airport will consider the proposal and obtain expert advice on its merits before being in a position to make a recommendation to shareholders. This could take some time," AIAL said.
When it announced its intentions early this month, CPPIB made it clear that it did not need control, that council shareholders would not be diluted and the airport company could stay listed.
It had a point of difference to the then faltering, and now scuppered, bid from Dubai Aerospace Enterprise (DAE), which in July offered to buy between 51% and 60% of AIAL in a complex $2.6 billion offer.
When CPPIB made its intentions known, DAE was already looking for a way out of its bid, which had aroused widespread concern about overseas control of a key piece of infrastructure.
A few days after the Canadians first went public DAE and AIAL announced that in light of the circumstances, they had no alternative but to pull their agreed "merger".
The termination was on a mutually acceptable basis, including that each party bears its own costs.
DAE's deal had needed the backing of 75% of shareholders and was to have been voted on in November after the local body elections.
Key shareholders, Manukau City Council with 10.5% and Auckland City Council with 12.75%, had said they would hold their stakes.
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Canadians
IF they had any balls they would be making a stand in the market and pick up 19.9% then they would be the biggest HOLDER..
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The interesting thing about this offer will be whether Canadian part-owners are any more politically palatable than Arab part-owners. Will be an interesting commentary on our societal cultural values...
In saying that it is structured somewhat differently than the DAE offering. They are looking for a much smaller holding than DAE, and wouldn't need the councils to sell. Mums and dads will be the targets.
This claim of "new securities that provide enhanced returns" is an intriguing one. How do we know the returns will be "enhanced"? this was an empty claim in the DAE offer and one the market was very skeptical of.
They are also presenting it as an "amalgamation", but to me, an amalgamation suggests two entities being combined in some way, and there is only one entity in play here, AIA. What will it be amalgamating with? I wonder why CPPIB would want to "amalgamate" with AIA, rather than just take a stake through (as Bricks says) a stand in the market.
Further details please!
Again, it will be tempting to take the money should the price go past 3:50 and punt on hoovering it back up again once the dust settles and the price goes back down...
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This has to be a big positive for the future direction and ownership of a New Zealand asset. Any comments from shareholders.
Auckland Airport nominations signal board battle
A battle for board seats at Auckland International Airport is looming after the company announced this morning it has received three director nominations.
Auckland Airport has received notices of director nominations for Richard Didsbury from Auckland City Council, John Brabazon from Manukau City Council and Lloyd Morrison from Infratil Limited.
Existing board members include chairman John Massland, Tony Frankham, Mike Smith, Keith Turner and Joan Withers.
Shareholders will vote at Auckland Airport's annual meeting on 20 November.
And from IFT.
INFRATIL DIRECTOR NOMINATION FOR AUCKLAND INTERNATIONAL AIRPORT LIMITED
Infratil advises it has nominated Lloyd Morrison for election as a director
of Auckland International Airport at the Company's annual meeting to be held
on 20 November 2007.
For further comment:
Lloyd Morrison
04 4732399
David Newman
021 450991
FAQ / BACKGROUND INFORMATION
1. Why does Infratil want board representation?
Infratil has around $93 million invested in Auckland International Airport
("AIA"). Lloyd Morrison has considerable experience with the direction of
infrastructure companies, especially airports. Infratil is of the view that
this experience will add value to AIA Board deliberations. Infratil also has
concerns about the process AIA has undertaken in respect of potential
ownership changes. It has been distracting for management and has lacked
transparency.
Lloyd Morrison's other relevant directorships include Infratil, Wellington
Airport, Infratil Airports Europe, Infratil Energy Australia and TrustPower.
Due mainly to this latter role, an exemption to the Electricity Industry
Reform Act 1998 is being sought from the Commerce Commission.
2. Could Infratil work with Auckland and Manukau City Councils?
Infratil has extensive experience working and partnering with local
government to develop constructive win/win outcomes. Wellington Airport and
Whenuapai Airport are good examples of constructive partnerships with
councils. Public transport is of course intrinsically a partnership of local
government and private operators.
3. Could there be conflicts of interest between Infratil's existing
investments in airports and Lloyd Morrison's directorship of AIA or
consequences for users?
Wellington Airport and Auckland Airport compete in the sense that both strive
to be the most efficient and effective airports in Australasia and this will
continue unabated. However, as regards services or prices the two airports
operate in different markets.
Some people have seen Infratil's support for civil use of Whenuapai Airport
as not being in the best interest of AIA. Infratil is strongly of the view
that a successful civil operation at Whenuapai will be complementary to AIA
in respect of both economics and connectivity. It can be noted that Auckland
City Council has previously endorsed civil use of Whenuapai as being "good
for Auckland", notwithstanding their holding in AIA. In any case Infratil
will have only one board representative on AIA and civilian use of Whenuapai
is a long-term project.
At present, regrettably, Air New Zealand is engaged in legal actions with
both Wellington and Auckland Airports over their respective charges and the
existence of a common director will not make any difference to those
processes.
4. What is Infratil's position on another party taking a major
shareholding in AIA?
Any proposal, whether from one of the parties now identified as interested in
a shareholding in AIA or someone new, will be treated on its merits.
Infratil's own position on foreign ownership of New Zealand assets is clear.
It is better for New Zealanders to own New Zealand assets unless the foreign
shareholder is bringing either capital which is otherwise not available or
expertise/added value.
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From Stuff: The All Blacks' loss is NZ's gain -- English and South African fans are big travellers so should augur well for visitors in 2011...
Millions poured into airport for World Cup
A $180 million upgrade of Auckland's international airport is to be fast-tracked to coincide with the 2011 Rugby World Cup.
The much awaited upgrade includes a bigger terminal, more shops, faster arrivals procedures and a new access pier that showcases New Zealand and has stunning views of Manukau Harbour.
Auckland Airport chief executive Don Huse said the planned expansion had been brought forward by 18 months so it would be completed in in time for the 2011 Rugby World Cup.
Peak queue times would be greatly reduced, while border protection services would offer a more welcoming experience in a more spacious environment on a newly developed first floor.
"We want it to be an experience that is outstanding, uniquely Kiwi and welcoming," he said.
Departing and arriving travellers using the new "Pier B" would have stunning views across Manukau Harbour while passing through areas showcasing iconic New Zealand images, art and design, as well as native flora, fauna, landscape and textures.
A wider range of food and beverage, foreign exchange and specialty retail outlets as well as areas with a distinctive New Zealand flavour would be available in the new enlarged arrivals lounge, while outside there would be improved terminal forecourt roads, traffic management and car parking facilities.
Lifts, sloping travelators and escalators would allow passengers and their meeters and greeters to easily move between the ground floor and the new first floor development, Mr Huse said.
The location of the new extension - to the north of the current terminal - was an integral part of the international terminal's 20-year master plan.
http://www.stuff.co.nz/4251509a10.html
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...and here's the bit that I was wondering about... how do they plan to pay for it: Answer, by charging the airlines more (and ultimately the passengers):
From NZSE notice (press release)
Stage 3B is expected to cost approximately $180 million primarily spread over
three years. It covers core terminal development and provides new roading,
expanded car parking and creates extensive opportunities for much enhanced
retail and commercial services. A 4-5 star hotel is also planned for the
international terminal precinct.
The bulk of this cost, approximately $120 million, is expected to be incurred
in the FY10 and FY11 years.
Auckland Airport continues to consult with its airline customers to determine
an appropriate recovery for the aeronautical costs associated with this
investment. Auckland Airport considered it crucial that finalising the
pricing consultation process does not prevent completion of the project prior
to the Rugby World Cup 2011.
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Why Worry..
Who cares who pays for it its got to be done and talking about it wont help wait till 2011 when millions start to turn up and bugger me the airport WORKS..
ALSO Wellington & Christchurch should be doing the same THING..
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Does anyone know what Infratil is doing with the money that they raised from their rights issue? A possible takeover bid for AIA?