Claims Filed Against AIAL In High Court
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CPP Investment Board and NZ Airport NC Limited Confirm Claims Filed Against Auckland International Airport Limited in New Zealand High Court
CPP Investment Board and its New Zealand subsidiary are seeking resolution of dispute over costs claimed by AIAL and declaration in respect of no-trade restriction
AUCKLAND, NZ (July 28, 2008): In response to statements made today by Auckland International Airport Limited (AIAL), the CPP Investment Board (CPPIB) and its wholly-owned New Zealand subsidiary confirm that they have filed a Statement of Claim against AIAL in the New Zealand High Court.
Under Section 49(2) of the Takeovers Code, NZ Airport NC Limited (“NZANC”) is responsible to pay costs that are “properly incurred” by AIAL in relation to the takeover offer launched by NZANC last December. AIAL issued a request for payment to NZANC in early June, following which NZANC twice sought clarification of issues and amounts so as to determine if they were properly incurred. The requests included a desire for details relating to a $5 million payment to First NZ Capital and Credit Suisse as an “incentive fee” for the “takeover defence.” So far no information has been given by AIAL in response to NZANC’s requests.
NZANC has paid to AIAL more than $1.3 million of the costs claimed, representing NZANC’s assessment of the amounts that it believes have been properly incurred, and therefore recoverable by AIAL. To resolve the issues concerning the amounts that are properly recoverable, NZANC has decided to seek a declaration from the High Court.
CPPIB and its subsidiary are also seeking to resolve through High Court proceedings the outstanding issues relating to a no-trading clause in a Confidentiality Agreement signed in June 2007 between the parties. CPPIB has sought in good faith to obtain AIAL’s agreement since April this year that the no trading restriction does not apply in the current circumstances. As CPPIB has been unable to obtain that agreement it has decided to seek declarations and other redress from the High Court in connection with the no trading restriction.
Graeme Bevans, CPPIB’s Vice President - Head of Infrastructure, stated, “Whilst we regret having to take these actions, CPPIB fully respects New Zealand laws and looks forward to these matters being resolved through the High Court proceedings.”