MAp, OTPP asset swap to happen ‘in two weeks’

The Australian airport owner and the Canadian pension plan are on course to complete their planned asset swap within the next two weeks, according to a statement released today. The swap will result in MAp having a sole focus on Sydney Airport.

MAp Airports (MAp) today announced that “all remaining conditions” for its asset swap agreement with the Ontario Teachers Pension Plan (OTPP) Board have been satisfied and that “financial close is anticipated to occur within the next two weeks”. 

Following the asset swap, MAp will have a sole focus on the ownership and operation of Sydney Airport, in which it will have a stake of around 85 percent. 

The asset swap sees MAp receive an 11 percent stake in Sydney Airport plus a cash payment of A$791 million (€596.3 million; $843.4 million), whilst OTPP is handed a 39 percent interest in Brussels Airport and 30 percent of Copenhagen Airport. 

Also in today’s statement, MAp said its current structure, which includes “an offshore company and two boards overseeing the operations of MAp”, is “no longer appropriate” and that it would therefore be seeking investor approval to restructure by removing the offshore, Bermudian company from its stapled security structure. 

MAp said the “simplification” would result in the removal of complexity from its listed structure, the listed entities being solely governed from Australia and would deliver additional cost savings to those envisaged as part of the asset swap. 

In July, the Future Fund – the Australian government investment fund – took a 5.05 percent stake in MAp for around A$188 million.