MAp shareholders okay spin-off(2)

The Australian airport investor is set to finalise its separation from its parent company after getting approval from its shareholders. It will raise money for the breakaway through a 1 for 11 rights issue.

Macquarie Airports (MAp) is to internalise its management after its shareholders gave their approval to the spin-off.

In a statement this morning the Australian airport investor said the plan to pay parent company Macquarie Group A$345 million (€209 million; $304 million) to sever ties and cancel future performance fees was approved at a meeting held yesterday.

MAp will raise the funds for the breakaway through a 1-11 rights issue at a price of A$2.30 per stapled security.

Following completion of the spin-off, which is set to go through on October 12, the company will change its name to MAP Airports International Limited.

Last week MAp dropped a rival management buyout proposal led by Australian Football League chairman Mike Fitzpatrick, which proposed hiring Fitzpatrick’s team to manage the company at a maximum annual fee of A$45 million. In an emailed response to the offer, Trevor Gerber, lead independent director for one of MAp’s boards, said: “It is not apparent that your ‘proposal’ is anything other than a job application for three people who the board does not know for positions that are not vacant with a cost of a minimum fee of $45 million.”

After the rejection of the rival bid a legal battle ensued between MAp and Fitzpatrick’s Global Airports (GAp). GAp’s legal bid subsequently collapsed in the New South Wales Supreme Court earlier this week, prompting Fitzpatrick to withdraw his proposal.

Since its listing in 2002 Macquarie Group has earned over A$547 million in management fees from MAp.

MAp’s management is to be brought in-house following the internalisation. MAp’s shares closed at A$2.95 earlier today, up 3.7 percent.