Mutual Agreement Cites "Recent Developments" As Cause

Auckland International Airport Limited and Dubai Aerospace Enterprise Ltd. announced Thursday the consultation process required under their Merger Implementation Agreement has been completed... and they have mutually agreed to terminate the MIA.

DAE and AIAL issued a joint statement that said, "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."

"DAE regrets that the opportunity to do business with AIAL did not eventuate on this occasion and wishes John Maasland and his team at AIAL well," said Kjeld Binger, Chief Executive Officer of DAE Airports.

The "recent developments" apparently includes Air New Zealand's request for a judicial review of new landing charges imposed on airlines flying from Auckland, and Wellington International Airport in an apparent breach in the contract agreement, as ANN reported.

Each side says no further comment will be made on this issue.

According to Bloomberg, this move clears the way for Canada Pension Plan Investment Board to acquire a minority stake.

"The tourism market is growing strongly and the management team have done a very good job," said James Lindsay of Tyndall Investment Management Ltd. in Auckland. "I don't think they need a strategic shareholder to provide them leads."

The airport encouraged DAE's bid, saying it would help the airport grow... but opinion polls indicated New Zealanders overwhelmingly opposed a foreign company owning controlling shares.

There remains a possibility Dubai may regroup and make a new, simpler offer, Lindsay said. "Their guys have done a lot of work. I would absolutely not strike them out yet," he said.

FMI: www.dubaiaerospace.com, www.auckland-airport.co.nz