Overseas Investment Act announcement
Web site: www.cppib.ca
Announcement by CPP Investment Board in relation to Overseas Investment Act announcement
AUCKLAND, NZ (4 March 2008): The Canada Pension Plan Investment Board (CPPIB) confirms that it is continuing with its partial takeover offer for shares in Auckland International Airport Limited (AIAL) following the Government’s announcement last night that it had introduced a new regulation under the Overseas Investment Act.
CPPIB’s Vice President - Head of Infrastructure, Graeme Bevans, said CPPIB has, from the outset, carefully structured its proposal to take into account that the airport is a sensitive asset of national importance.
He emphasised that CPPIB’s intention has always been to be a long-term minority shareholder without a controlling interest.
“Before we sent our offer to shareholders, we entered into a deed which restricts CPPIB’s ability to vote on resolutions to appoint and remove directors of AIAL, and the Independent Adviser, Grant Samuel, has confirmed in its report that CPPIB will not control AIAL following a successful offer.
“In late 2007, the Board of AIAL approached us asking us to make a full takeover offer for the airport, which we declined because of our belief that it is appropriate for us to have only a non-controlling interest. We have always been clear that our desire is to hold a minority stake in the airport, not a controlling one.”
“We are encouraged by the widespread shareholder support for our offer from retail and institutional investors both in New Zealand and overseas. We encourage them to approve and accept the offer now.”