KEY POINTS:
Manukau Mayor Sir Barry Curtis said a Dubai Aerospace Enterprise (DAE) bid to control Auckland Airport can be defeated if Manukau and Auckland city councils work together.
DAE today unveiled a plan to spend $2.3 billion to gain control of a new company that will own Auckland's airport.
The airport's directors are unanimously recommending the deal, which would see Dubai Aerospace Enterprise acquiring between 51 per cent and 60 per cent of the airport business.
Manukau City Council owns 10.05 per cent of AIAL and Auckland City Council 12.75 per cent, giving the two 22.8 per cent.
The scheme of arrangement proposed by DAE has to be approved by 75 per cent of AIAL shareholders. This would be difficult to achieve if both councils voted against it. DAE is believed to be meeting with Auckland City Council representatives tonight and with Manukau representatives tomorrow.
The shareholder vote is in November after council elections.
Sir Barry said he was encouraging the two councils to take a common position and he would talk to Auckland Mayor Dick Hubbard tomorrow.
The Canadian Pension Plan Investment Board (CPPIB) has had talks with Manukau and there had also been talks with one other party Sir Barry would not identify.
Sir Barry said he was very concerned and annoyed to learn that the board of AIAL was recommending the offer.
"I am personally totally opposed to a foreign company obtaining a controlling interest in our domestic and international airport.
"This has serious implications for New Zealand. The airport is also situated on a large strategic landholding bounded by a very significant part of the Manukau Harbour and foreshore.
"This resource is of enormous economic, social, environmental and cultural value to the people of the Auckland region and New Zealand."
About 70 per cent of international visitors to New Zealand pass through the airport.
That made it a catalyst for the promotion of tourism "in our beautiful country", said Sir Barry.
The airport was also a hub to the Pacific.
"I am aware the Australian government has placed a restriction on any foreign interests having a majority shareholding in their airports and the same should apply in New Zealand. Regretfully this was not imposed at the time of corporatisation of AIAL in 1987.
"Again, I also hold strongly to the view that the Manukau City Council should retain its shareholding in the airport as a strategic asset for the benefit of present and future generations of Manukau ratepayers.
"I treasure our 10.05 per cent stake in the company. Since it was listed in 1998 ratepayers have received some $108 million in dividends, special dividends and return of capital. It is a magnificent long-term investment for our people.
"I have fought long and hard to retain our shareholding whilst all other local authorities apart from Auckland City have over the years sold their shareholdings for well below the huge value the shares now reflect.
"This matter is of major importance to the people of Manukau city, the Auckland region and New Zealand and I have no hesitation in expressing my opposition to a foreign company taking a controlling interest in our airport. Who knows where this could finish up?"
The council was considering its position on the transaction.
Auckland City Council will get a cash windfall of $375m and about a 6.2 per cent holding in the new company and Manukau City Council will get $281 million and 5 per cent of the new company if they go with the base offer.
Shareholders can also elect to sell their shares and stapled notes in the new company for cash.
- NZPA
