AUST'S MAP STANDS FIRM ON MANAGEMENT PLAN DESPITE NEW CRITICISM

Australian company Macquarie Airports' (MAp) (ASX:MAP) independent directors have told security holders they will proceed with their own plans to internalise management despite new criticism of the plan.

MAp received a letter on behalf of two security holders on Tuesday alleging that the group's explanatory memorandum of its plans to separate from Macquarie Group was deficient.

The security holders together hold 999,013 securities of the 1.718 billion on issue.

MAp has rejected the allegations, saying in a statement it does not believe the letter has substance.

The security holder allegations come amid a public slanging match between MAp and a group called Global Airports (GAp) made up of former airport executives led by Michael Fitzpatrick.

GAp has offered an alternative proposal to MAp's plans to pay Macquarie Capital Ltd $345 million for management rights to the group.

In a letter sent to MAp security holders on Wednesday, chairman of MAp's independent board committee (IBC) Stephen Ward and chairman of Macquarie Airports Management Ltd IBC Trevor Gerber said GAp's offer would not be accepted.

"The Independent Board Committees (IBCs) of Macquarie Airports have considered and evaluated GAp's suggestions and have decided not to pursue them on the basis that they pose unacceptable risks for MAp security holders from both a financial and operational standpoint," they wrote.

"Furthermore MAp is not seeking a new management team.

"The internalisation will enable a clean break from Macquarie as manager of MAp."

GAp has offered to take on management responsibilities of MAp for a minimum of $20 million in fees.

GAp described the offer as "demonstrably superior" to the proposed plan as it would deliver large potential savings for security holders.

In response to "security holder feedback", Macquarie has this week agreed to potentially reduce the management fee to nil, by paying up to the $345 million price of the management rights, if MAp incurs substantial costs in renegotiating its debts as a result of the change over.

That prompted further questioning from Mr Fitzpatrick, who on Tuesday released a statement questioning why MAp would not discuss the alternative proposal.

"If this sort of concession can be extracted from Macquarie on the run, how much more do MAp investors stand to gain if the independent directors do the right thing by their investors and engage with GAP?," Mr Fitzpatrick said.

GAp is still seeking further disclosure from MAp's independent directors it believes are needed before security holders vote on the management internalisation plan next week.

MAp securities were flat at $2.75 at 1100 AEST.

(AAP)lm

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