MAp reaches close on OTPP asset swap

The Australian airports operator now owns approximately 85% of Sydney Airport, while disposing of its entire interests in Brussels and Copenhagen airports to the Canadian pension plan.

MAp Airports (MAp) has announced that financial close has been reached on its asset swap agreement with the Ontario Teachers Pension Plan (OTPP) Board. On September 28th, the firm had flagged that the transaction was expected to conclude within two weeks. 

Today’s statement said that MAp’s interest in Sydney Airport was expected to be between 84.66 percent and 84.97 percent following the acquisition of a stake of around 11 percent from OTPP. In addition to the stake, MAp is also receiving a cash consideration which the statement said would be between A$791 million (€596 million; $843 million) and A$813 million. 

On the other side of the equation, OTPP takes MAP’s 39 percent interest in Brussels Airport and 30 percent interest in Copenhagen Airport. 

Today’s statement also said that MAp is on course to complete its previously announced “simplification” by the end of this year, subject to investor approval. It said that full details of the process will be provided to investors shortly. 

The simplification is understood to involve the removal of an offshore, Bermudian company from its stapled security structure in a move designed to remove complexity from its listed structure. The listed entities will be solely governed from Australia, delivering cost savings in addition 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.