Macquarie Airports (MAp) has rejected a counter offer from a consortium that is proposing to take over its management rights.
MAp came to an agreement with its parent Macquarie Group, the Australian investment bank, earlier this year to internalise its management. It proposed paying the bank A$345 million for the management rights, and the move must be approved by its shareholders.
However, an independent group called Global Airports, which includes the former heads of Melbourne and Copenhagen airports and a fund manager, has offered an alternative and said that it can take over the management at a lower cost. This offer, however, has been rejected by MAp.
"You propose to risk breaching the bank change of control clauses with MAp security holders bearing all the risk and you carrying no risk but receiving a minimum A$45 million fee," says Trevor Gerber, the chairman of Map management's independent board committee.
"In practical terms, it is not apparent that your 'proposal' is anything other than a job application for three people who the board does not know for positions that are not vacant with a cost of a minimum fee of A$45 million."
Macquarie Airports operates Sydney Airport, Australia's main air gateway.
Source: Air Transport Intelligence news