MAp share offer ‘significantly oversubscribed’

The airport investment fund formerly managed by Macquarie Group has received interest for nearly twice the A$356m it was seeking to raise in a new share offer. The proceeds will be used to make an A$345m severance payment to Macquarie in return for terminating its management agreement with MAp.

MAp Airports, the airport investment fund formerly managed by Macquarie Group, has received applications from existing investors for A$670 million (€410 million; $603 million) in new MAp shares, or nearly double the A$356 million it was seeking to raise.

MAp said the offer was “significantly oversubscribed” because many of its shareholders applied for new shares in excess of their entitlement. They were entitled to buy 1 new share at A$2.30 for each 11 shares of MAp they held as of 12 October.

The gross proceeds of the offer are approximately A$356 million and MAp expects to issue approximately 155.1 million in new shares. The new shares will begin trading on the Australian Stock Exchange on Monday, 9 November.

MAp: money in
the bank post-
share offer

Proceeds of the offer will be used to make an A$345 million cash payment to Macquarie Group as a severance payment for terminating its management agreement with MAp.

Macquarie said in its half-year 2010 results presentation that it will recognise A$414 milion in gains from internalisations and spinoffs of MAp, Macquarie Communications Infrastructure Group and the Macquarie Leisure Trust.

In addition, Macquarie's has almost broken even on its investment in MAp. In May, Macquarie reported that its stake in MAp, with a book value of A$1.1 billion, only had a market value of about A$640 million, resulting in an unrealised loss of about A$470 million. Now the investment is carried at a book value of about A$1 billion and has a market value just A$3 million below the carrying value.

MAp, formerly Macquarie Airports, ended its management agreement with Macquarie Group as of 30 October in accordance with a previously agreed management internalisation deal.  It is now an independent entity and has rebranded itself as “MAp Airports”. It is the owner of several airports in cities across Europe and Australia, including Copenhagen, Brussels and Sydney.

MAp shares stood at A$2.72 as of 2 November.