22 January 2008
The directors of Auckland Airport have been advised that the Takeovers Panel has reached an agreement with Canada Pension Plan Investment Board (CPPIB) that there is no requirement for brokers' stamps to appear on the approval forms in connection with CPPIB's offer for a broker handling fee to be paid by CPPIB.
As a result, the directors of Auckland Airport advise that Auckland Airport will withdraw its broker handling fee payable on objections to the current takeover offer. As previously advised, Auckland Airport will pay brokers that handling fee in connection with forms lodged on or before today, provided the shareholder vote is not successful.
"When the Auckland Airport directors announced on 17 December 2007 that the company would pay brokers a handling fee, the objective was to ensure that brokers were not improperly incentivised in either direction in relation to the shareholder vote", said Auckland Airport chairman, Tony Frankham.
"The directors now consider this has been achieved by the Takeovers Panel and, accordingly, no longer consider it is necessary for Auckland Airport to pay a fee for objections".
On 17 December 2007, Auckland Airport directors recommended that Airport shareholders reject the partial takeover offer being made by CPPIB for the 39.53 per cent of the Auckland Airport shares not already held by CPPIB at $3.6555 per share.
Shareholders are required to make two decisions - whether to sell their shares into the offer, and whether to vote for or against CPPIB becoming a 40 per cent shareholder. Only a majority vote in favour of the second question will allow CPPIB to complete the transaction.
The offer is open until 13 March 2008.