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“Macquarie Airports’ management team remains enthusiastic about the business“ |
Kerrie Mather CEO Macquarie Airports |
AUSTRALIA. Macquarie Airports (MAp) announced today that it has reached agreement with Macquarie Capital (Macquarie) to internalise the management of MAp.
MAp is terminating the management rights of Macquarie, and will issue A$345 million (US$280 million) in MAp securities as compensation.
The agreement has been negotiated by Independent Board Committees of Macquarie Airports Management Limited (MAML) and Macquarie Airports Limited (MAL) on behalf of MAp security holders.
Chairman of the Independent Board Committee of MAML Trevor Gerber said: “We have examined a range of options to address the gap between the MAp security price and the value of MAp’s airports and we have progressed a number of initiatives.
“We are confident that internalising management is an important further step towards reducing that gap and to growing value for all security holders. In particular, an internally managed group has the potential to attract a wider range of investors. We have negotiated a transaction with Macquarie that is broadly neutral in terms of earnings per stapled security.”
Kerrie Mather will continue as MAp’s Chief Executive and has been invited to join the Board. The MAp management team (who are currently employees of Macquarie) will be offered employment with MAp and it is expected that most will transfer to MAp.
Mather said: “MAp’s management team remains enthusiastic about the business. As a result of actions taken over the last couple of years MAp is in a sound financial position. We have high quality airports with good growth prospects and a strong management team that is well placed to extract full value for security holders.”
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Click here for details of the internalisation agreement |
Macquarie will be issued 150 million new MAp stapled securities, at an issue price of A$2.30 (US$1.87) per security. The securities issued to Macquarie have a value of A$345 million (US$280 million).
The 150 million securities represent 8.1% of the expanded capital and will increase Macquarie’s interest in MAp to approximately 27.3%.
Macquarie has also agreed to provide support services to MAp for twelve months (including six months at no cost) to allow MAp to operate as a standalone entity “as soon as practicable”. These support services include provision of premises, information technology support, tax and accounting services.
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