The CPP Investment Board intends to submit a proposal under which it would acquire a significant minority stake in Auckland International Airport Limited(AIAL).

The board has formulated a framework for an amalgamation that it will discuss with AIAL at a meeting scheduled for tomorrow.

The framework for amalgamation formulated by the CPPIB would provide shareholders with the choice of three options, one of which will be an all cash option of NZ$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 while preserving the investment grade rating of AIAL.

Each of the three choices could be subject to some scaling, depending on shareholder take-up of the various options.

Earlier this month, the CPPIB announced it wanted a minority stake in AIAL of not more than 49%.

To read CPPIB Wants Stake in AIAL, click here.

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