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Dubai Aerospace abandons bid for control of Auckland Airport

Wednesday 06/09/2017 - Source: Servihoo


Dubai Aerospace Enterprise Thursday abandoned its controversial bid to take a majority stake in New Zealand's aviation hub, Auckland International Airport.

Dubai Aerospace Enterprise (DAE) and Auckland International Airport Ltd (AIAL) said they had terminated their merger agreement.

Under the deal, the United Arab Emirates-based aerospace and aviation company would have taken a stake of between 51 and 60 percent of the airport company for up to 2.6 billion dollars (1.78 billion US).

"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," the two companies said in a statement.

There had been widespread opposition to foreign control of the airport from the government, local government bodies with substantial stakes in the airport, and the public.

"DAE regrets that the opportunity to do business with AIAL did not eventuate on this occasion," DAE Airports chief executive Kjeld Binger said.

The deal -- already approved by the airport's board -- required approval by 75 percent of shareholders but the Auckland and Manakau city councils, with combined stakes of around 23 percent, opposed the deal along with some other shareholders.

But AIAL remains a target, after Canada Pension Plan Investment Board (CPPIB) said Monday it planned to bid for up to 49 percent of the company.

Details of any bid have yet to emerge but CPPIB said its offer would allow current levels of New Zealand ownership of the airport to continue.


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