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WELLINGTON - A CANADIAN state pension fund has secured its target of a 40 per cent stake in New Zealand's Auckland International Airport, requiring only government clearance to finish the US$1.48 billion (S$2.04 billion) deal. The Canadian Pension Plan Investment Board's partial offer at NZ$3.5980 a share got the required a majority of shareholder votes in favour as well as securing over 63 per cent of the shares.
The bid still requires government approval, due by April 11, Auckland Airport chairman Tony Frankham said in a statement.
'Auckland Airport hopes that, in the interests of certainty and an informed market, the government ministers concerned will announce their decision well before this deadline,' Mr Frankham said in a statement.
Analysts say the government may reject the deal, after it announced on March 4 tougher rules for foreign stakes in strategic assets. Auckland Airport handles 70 per cent of New Zealand's international traffic.
Late on Thursday, CPPIB said it had received 62.47 per cent of shares accepting its offer, to give it a total holding of 63.25 per cent. There will be some scaling of the offer once final acceptances are confirmed.
Earlier on Friday, Auckland Airport said that 79.7 per cent of shareholders had voted on the offer, with 57.7 per cent of those votes cast in favour.
The bid closed at 5pm (12pm Singapore time) on Thursday.
The airport's two biggest shareholders, the Auckland and Manukau city councils, which have around 23 per cent, both said they would not sell and would vote against the bid.
The next largest shareholder, the New Zealand state pension fund, said late on Thursday it would sell its stake.
The airport's board had recommended shareholders accept the offer, because it is the best price in the current market environment.
However, a majority of the board told shareholders the Canadian offer undervalues the company in the long term and recommended voting against the offer. -- REUTERS
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