MAp Investors to Vote on Internalisation

Submitted by Jim Thesiger on 30 September, 2009 - 05:14

The Macquarie Airports (MAP) investors are scheduled to cast their votes today on the internalisation of MAp’s management by severing its tie with Macquarie Group with a payment of $345 million for the management rights as the court ruling went in favour of the meeting to be held today. Global Airports (GAp) dropped its bid of taking over the management last night after Macquarie Group vowed to go for seeking personal damages from the directors of GAp for the losses that it may face due to the delay of the meeting because of the GAp bid. GAp came up with the decision to abandon its bid after the NSW ruling allowed the MAp investors to go on with the meeting today regarding the MAp management internalisation. Earlier GAp asked for a halt on that meeting and submitted a proposal to take over the MAp management.

The cost was awarded to MAp by the court which Mike Fitzpatrick is expected to pay on behalf of Scott Frazer, an independent shareholder and GAp’s director Kjeld Binger. Mr. Fitzpatrick, who is the driving force behind GAp held meeting with advisors for assessing the potential damages that Macquarie Group could seek. The size of MAp’s possible damage claim was considered as the main reason for GAp to drop its take over proposal. Mr. Fitzpatrick expressed his disappointment on the actions taken by the independent directors claiming that the MAp security holders could be benefited from the proposal that his side came up with.

In reply Mr. Gerber stated that the proposal presented by GAp involved significant risk for the security holders and necessary steps were required to be taken from his side to make sure that the interest of the MAp security holders is protected. The meeting regarding the MAp internalisation is expected to be held in Sydney today. It is to be mentioned that MAp holds stakes in Sydney, Brussels and Copenhagen airports.