We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Thu 6 Sep 2007 12:14 PM

Font Size

- Aa +

Dubai scraps Auckland Airport takeover

Dubai Aerospace Enterprise's $1.8 billion plans for control of New Zealand's largest airport called off.

Auckland International Airport and Dubai Aerospace Enterprise said on Thursday they had scrapped a plan for the NZ$2.6 billion ($1.8 billion) takeover of New Zealand's largest airport.

The outcome had been widely expected after the state-backed Dubai Aerospace said last week Auckland Airport had not done enough to promote the deal. It said a legal challenge by an airline over airport charges had breached the terms of the bid.

Auckland Airport had denied the claims, and the two parties had started talks to try and resolve the differences.

"In light of recent developments, DAE regrets that, notwithstanding the best efforts of the board of AIAL, the transaction could not proceed in the form proposed," Dubai Aerospace said in a joint statement.

The Aerospace offer was for between 51% and 60% of the company, equivalent to NZ$3.80 a share. The deal had board backing, but had drawn widespread public and political opposition and was due to go to a shareholder vote in November.

On Monday, Canada's state pension fund said it would seek up to 49% of Auckland International Airport, although it did not give any details. Analysts have said the Canada Pension Plan Investment Board, which had a tentative NZ$3.10 a share offer rebuffed in June, could acquire a minority stake for around current market prices.

The airport's biggest single shareholder, Auckland City Council, with 12.75%, voted on Monday not sell its stake, although Mayor Dick Hubbard told Reuters the council might be open to a foreign investor taking a minority stake.

The Manukau City Council is the other main shareholder with a 10.1% stake. It has yet to make a decision.

Shares in Auckland Airport closed at NZ$3.09 on Wednesday.

Arabian Business: why we're going behind a paywall

For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.