NEW ZEALAND. Auckland International Airport Limited (AIAL) and Dubai Aerospace Enterprise (DAE) announced today that they have terminated the Merger Implementation Agreement (MIA) that would have seen the UAE airports business take a majority stake in New Zealand’s largest airport company.
In a joint statement the two companies said they had completed the consultation process required under the agreement and determined “that, in light of the circumstances, they have no alternative but to terminate the MIA on a mutually acceptable basis, including that each party bears its own costs”.
DAE said it regretted that “in light of recent developments” that the transaction could not proceed in the form proposed. That comment was a reference to recent legal proceedings filed by national carrier Air New Zealand seeking a judicial review of Auckland Airport’s recent aeronautical pricing increases. DAE was also irked by the resistance of national and local politicians towards the sale.
DAE Chief Executive Officer Kjeld Binger said: “DAE regrets that the opportunity to do business with AIAL did not eventuate on this occasion and wishes John Maasland [AIAL Chairman] and his team at AIAL well.”
AIAL and DAE said that they will be making no further comment.
Earlier this week, as reported, the CPP Investment Board announced that it intends to submit a proposal to acquire a significant minority stake in AIAL. CPP Investment Board manages funds on behalf of the Canada Pension Plan.
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