Crafty Canadians

The Canadians have today said they will reduce their voting strength in Auckland International Airport to 24.9%, even if they get 40% of the shares.  This is definitely below the level regarded as having “control” and makes it very difficult for the Government to turn the bid down, unless they want to be exposed as total xenophobes.

The Hive reports:

CPPIB intends to voluntarily reduce its voting power for all shareholder resolutions, with the exception of resolutions that affect the rights attaching to CPPIB’s shares, to 24.9% of all AIAL voting shares on issue. CPPIB will also provide that the limitation to 24.9% can only be relaxed or revoked by CPPIB if it is permitted by a New Zealand overseas investment law or regulatory approval to vote more than 24.9% of the voting shares in AIAL on issue. The voluntary restrictions that CPPIB will put in place in relation to its voting rights reinforce the fact that CPPIB will not have control over AIAL in any respect.

The Government’s response will be most interesting.  If they still send out signals saying no, then it will be clear they have done a full 180 degree flip and are now against overseas investment in New Zealand, regardless of control of assets.

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