September 03, 2007
AUCKLAND, NZ (Sept 3, 2007): The CPP Investment Board today announced 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 statements made on August 23 by AIAL, the CPP Investment Board confirms that it has now largely completed its due diligence of AIAL and is currently considering its options regarding the specifics of a formal proposal. The CPP Investment Board is committed to two principles in the design of any proposal in relation to AIAL. Firstly, the CPP Investment Board would limit its stake to not more than 49% and, secondly, any desire by Manukau City Council and Auckland City Council to maintain their proportionate stakes in AIAL would be fully accommodated. Any CPP Investment Board proposal will involve the issue of new securities which will provide enhanced returns while preserving the investment grade rating of AIAL. Mark Wiseman, Senior Vice President – Private Investments, CPP Investment Board, said AIAL is a very attractive asset that fits the CPP Investment Board’s long-term investment objectives, and he noted the following: “Our goal is to put forward a compelling proposal to AIAL that meets the interests of all stakeholders.” Specifically, we aim to deliver significant value to AIAL shareholders, while preserving ongoing substantial levels of New Zealand ownership of the airport.” “Moreover, we believe the structure we intend to propose will also help to facilitate future investment in the continued growth and development of AIAL. We are committed to supporting the current management team, who we believe to be world class.” 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.
For further information contact:
CPP Investment Board