CPP Investment Board shows renewed interest in Auckland International

Nicole Mezzasalma

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DAE’s reluctance in purchasing airport spurs Canadian company

The Canada Pension Plan Investment Board (CPPIB) has announced it intends to submit a renewed bid to acquire “a significant minority stake” in Auckland International airport (AIAL). The move follows the recent notice given to AIAL by Dubai Aerospace Enterprises (DAE) asking for talks, which could mean an end to the merger agreement between the two parties.

The Canadian company said in its statement that it “is currently considering its options regarding the specifics of a formal proposal” to buy a stake of no more than 49% of AIAL. It added that “any desire by Manukau City Council and Auckland City Council to maintain their proportionate stakes in AIAL would be fully accommodated”.

CPPIB senior vide president private investments Mark Wiseman said AIAL is a very attractive asset that fits the firm’s long-term investment objectives. "Our goal is to put forward a compelling proposal to AIAL that meets the interests of all stakeholders,” he said. “Specifically, we aim to deliver significant value to AIAL shareholders, while preserving ongoing substantial levels of New Zealand ownership of the airport. We believe the structure we intend to propose will also help to facilitate future investment in the continued growth and development of AIAL. Moreover, we are committed to supporting the current management team, who we believe to be world class."