CPPIB claim relating to expenses
CPPIB claim relating to expenses and confidentiality agreement
Auckland Airport has received notice of a claim from Canada Pension Plan Investment Board and its subsidiary, NZ Airport NC Limited, (together, "CPPIB"). The claim relates to Auckland Airport's request for reimbursement of expenses it properly incurred in responding to CPPIB's partial takeover offer for Auckland Airport. The claim also relates to Auckland Airport's refusal to release CPPIB from a confidentiality agreement which prohibits CPPIB from trading in Auckland Airport shares.
CPPIB asserts that certain of the expenses claimed by Auckland Airport were not properly incurred by it in responding to CPPIB's takeover offer. Auckland Airport considers that the expenses for which it has sought reimbursement were indeed properly incurred and ought to be paid by CPPIB.
Auckland Airport is seeking expenses incurred of $7.60 million. CPPIB has paid $1.34 million. The expenses in dispute therefore amount to $6.26 million.
CPPIB also asserts that Auckland Airport does not have grounds for refusing to allow it to trade in Auckland Airport shares. Auckland Airport considers it has acted entirely reasonably and lawfully in relation to the confidentiality agreement between the parties at all times.
CPPIB's claims in relation to the confidentiality agreement include a damages claim which (based on Auckland Airport's share price at closing on 25 July 2008) is for approximately $2 million.
Auckland Airport will vigorously defend the claim brought by CPPIB.