A Canadian pension fund said Monday it intends to bid for up to 49 percent of New Zealand's aviation hub, Auckland International Airport. The news comes after a bid by Dubai Aviation Enterprise (DAE) worth up to 2.6 billion dollars (1.82 billion US) for a stake of up to 60 percent in the airport was thrown into doubt amid widespread opposition to foreign control.
Canada Pension Plan Investment Board (CPPIB) said Monday it had largely finished due diligence of Auckland International Airport Ltd (AIAL) and was considering the details of a formal proposal. "Our goal is to put forward a compelling proposal to AIAL that meets the interests of all stakeholders," said the pension fund's senior vice president for private investments, Mark Wiseman.
"Specifically, we aim to deliver significant value to AIAL shareholders, while preserving ongoing substantial levels of New Zealand ownership of the airport," he said in a statement. CPPIB's stake would be limited to 49 percent and the desire of local governments in Auckland to maintain their stakes would be accommodated, the fund said. The pension fund expressed interest in the airport earlier in June but its approaches were rejected by key shareholders.
On Friday, doubts surfaced about the DAE bid after the company said legal proceedings filed by Air New Zealand over Auckland Airport's landing charges could allow the proposed deal to be scrapped.
The DAE deal, which was approved by AIAL's board but requires 75 percent approval by shareholders, has been in trouble since it was announced in July due to widespread opposition to foreign control of the airport.
There has been opposition from the public as well as from Prime Minister Helen Clark and her government. Many figures in local government, which hold sizable stakes in the airport, have also spoken out against the deal. Two city councils own a combined 23 percent stake.
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