CANADA/NEW ZEALAND - The Canada Pension Plan Investment Board has managed to secure a deal with Auckland International Airport for costs related to the collapse of its partial takeover.
The pensions board, currently managing assets totalling C$119.4bn (€73.7bn), launched legal action against Auckland International Airport Limited (AIAL) on 25 July 2008 to recoup some of its costs concerning a failed bid to buy 40% of the company for C$1.4bn and lift an order preventing them from selling their stockholding.
The deal was eventually blocked by the New Zealand government under the Overseas Investment Act, but CPPIB already been through a year-long process to try and satisfy concerns about ownership of the company and associated governance.
It is unclear what CPPIB will gain from the deal though it is understood the earlier claims was for C$6m.
A statement issued today by AIAL said the claims for costs and "related to Auckland Airport's refusal to agree that the provisions of a confidentiality agreement which prevented CPPIB from trading in Auckland Airport shares no longer applied" have been settled.
CPPIB has a targeted allocation of 12.5% to inflation-related assets, a key element of which is to buy exposure to infrastructure investments either through direct holdings or via infrastructure funds.