KEY POINTS:
Investors in Auckland Airport hoping to gain from a partial takeover bid have been left wondering what to wish for, after its share price jumped 30c in a week.
Airport shares hit $2.83 on Thursday, up from $2.53 at the close of the previous week. They closed at $2.80 on Friday.
The jump boosted the morale of those supporting the bid, by overseas pension fund Canada Pension Plan Investment Board, because it suggested the market was confident the bid would succeed.
But it also closed some of the gap between the share price and the Mounties' offer. The gap, which had hovered around $1 since the start of the year, kept pressure on the airport's board to revise its "don't sell" recommendation.
The board said in December the Canadian offer did not reflect the company's true value, and any revision of that view would help the bid's chances.
If the bid succeeds, shareholders stand to gain the difference between what they paid for shares and the offer of $3.598.
The Canadians originally offered $3.6555 a share for a 39.53 per cent stake in the airport, which would bring their total shareholding to 40 per cent.
But last week they consented to a fully imputed dividend of $5.75 per share to be recovered from shareholders through a reduced offer price if its takeover is successful. The dividend payment means the price has been reduced to $3.598.
The Canadian bid and a failed bid by Dubai Aerospace have put pressure on the airport's half-year profits. Net profit after tax fell 3.9 per cent to $47.6 million for the six months ending December 31, with the company blaming the drop on $5.8m in one-off costs linked with the bids, and increased interest and depreciation charges.
The airport saw solid growth in revenue and operating earnings, with double-digit revenue growth in its retail, rental and car parking businesses. Total revenue for the half year was up 7.9 per cent to $172.3m.
Shareholders have until March 13 to decide on the takeover, a decision that looks increasingly likely to come right down to the wire.
Major shareholders Auckland (with 12.75 per cent) and Manukau (10.5 per cent) city councils have said they will not sell their shares, but Auckland city may still consent.
The Canadians need to win shareholders over on two counts. A majority needs to agree the bid can proceed, then 39.2 per cent must agree to sell their shares.
By Wednesday, just 7.3 per cent of shareholders had voted on the sale - with 57.6 per cent of those against it and 42.4 per cent in favour.
Manukau city looks likely to oppose the bid, but Auckland city said last week it would not decide how to vote until the day before the offer was due to close.
If the Canadian bid fails, there is speculation that Infratil, the majority owner of Wellington Airport, may try to build up its stake in Auckland. The infrastructure investor already owns almost 8 per cent of Auckland Airport with New Zealand Superannuation Fund.
