September 19, 2007
AUCKLAND, NZ (September 19, 2007) In response to continued speculation and market activity, the CPP Investment Board today confirmed that it intends to submit a proposal under which it would acquire a significant minority stake in Auckland International Airport Limited (AIAL). Following on from the statement made on September 3, the CPP Investment Board confirms that it has formulated a framework for an amalgamation that it will discuss with AIAL at a meeting scheduled for September 20. The framework for amalgamation formulated by the CPP Investment Board would provide shareholders with the choice of three options, one of which will be an all cash option of $3.70 per share. The other two options, which will provide a value of up to $3.90 per share, would involve a combination of cash and the issue of new securities that provide enhanced returns whilst preserving the investment grade rating of AIAL. Each of these three options could be subject to some scaling, depending on shareholder take-up of the various options. The CPP Investment Board also advises that it has received committed financing in respect of its proposal. CPP Investment Board The CPP Investment Board invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 16 million Canadian contributors and beneficiaries. As at June 30, 2007, the CPP Fund was C$120.5 billion (NZ$162.5 billion). In order to build a diversified portfolio of CPP assets, the CPP Investment Board is investing in publicly-traded stocks, private equities, real estate, inflation-linked bonds, infrastructure and fixed income.
The CPP Investment Board is accountable to the Canadian Parliament and the federal and provincial finance ministers. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments.
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