KEY POINTS:
A buy-up by Infratil and New Zealand Superannuation Fund of a stake in Auckland International Airport has been welcomed by potential airport buyer Dubai Aerospace Enterprise.
DAE Airports chief executive Kjeld Binger said the buy-up does not stop his company's bid for the airport.
"We note that the Superannuation Fund and Infratil, like the two city councils Auckland and Manukau, have stressed they have open minds about our proposal. We would hope that all shareholders look at our proposal and judge it on its many merits," said Mr Binger.
The Infratil/Super Fund move could stop the airport being sold to DAE, an analyst said earlier today.
Shareholders have to vote on the potential sale to Dubai Aerospace Enterprise, with 75 per cent approval required.
Infratil and the Super Fund now have a 6.2 per cent stake and councils in the Auckland region hold a significant proportion of the shares.
Brook Asset Management executive chairman Simon Botherway said the deal will stop DAE's takeover.
"The councils control it in any event. It would be very unlikely that a proposal would get up with a 75 per cent majority," Mr Botherway said.
He said that would require every shareholder voting and casting their vote against the councils, which is highly unlikely.
NZ Super Fund holds 2.87 per cent of Auckland Airport under its infrastructure management mandate with Morrison & Co and Infratil holds 2.14 per cent.
Separately, NZ Super holds 1.19 per cent of Auckland Airport under mandates with other fund managers.
Up to eight parties are reported to be interested in bidding for the airport operator.
Last month, state-backed DAE offered to buy between 51 per cent and 60 per cent of AIA, in a $2.6 billion offer at $3.80 in cash and securities.
Infratil chief executive Lloyd Morrison, said: "Infratil and NZ Super Fund are long term investors in the infrastructure sector.
Auckland Airport is one of New Zealand's leading infrastructure assets with great long term growth potential."
Infratil and NZ Super Fund began purchasing shares in Auckland Airport in 2006.
Mr Morrison said growing travel demand in Asia Pacific region, the continuing strong performance of Air New Zealand and Qantas, and the large aircraft orders for growing Asian and Middle East airlines made Infratil confident about Auckland Airport's prospects, irrespective of the outcome of Dubai Aerospace's current proposal or any other offer that might be made.
"We have an open mind on the Dubai Aerospace proposal. We expect to be involved in considerably more discussion over what the optimal ownership, control, and capital structure of Auckland Airport should be and believe there is a strong business case for New Zealand investment," Mr Morrison said.
Infratil has also done a lot of work to develop former Auckland air force base, Whenuapai, into a commercial airport. That move has been strongly opposed by Auckland Airport.
It also owns two-thirds of Wellington International Airport.
- with NZPA, NZ HERALD STAFF
