-
Auckland Airport - Source: ONE News
Auckland International Airport chairman Tony Frankham says he is "disappointed" the government is planning to bypass the Takeovers Code to approve the consolidation of the airport's shareholdings.
As part of the restructure of Auckland's local government, airport shareholdings owned by the Auckland and Manukau city councils will be combined.
The airport says putting these two shareholdings together would make a cumulative shareholding of 22.82%, above the 19.9% takeover threshold specified by the Takeovers Code.
Under the usual process, no shareholder is allowed to own in excess of 19.9% of a "code company" like the airport unless that shareholder is granted an exemption by the Takeovers Panel, or granted approval by other shareholders. Otherwise, the shareholder must make a takeover offer for at least 51%.
"Auckland Airport is disappointed at the government's use of specific legislation intended to override the Takeovers Code. It believes the appropriate course of action would be for the Takeovers Panel to determine what happens, should the Auckland Council's shareholding exceed 19.9% at the time of consolidation," says Frankham.
The airport says it will make a submission about its concern to the select committee considering the proposed legislation.
