Dexus accused of breaching confidentiality in airport stake sale

Dexus, the trustee and manager of a 27% stake in Australia Pacific Airports Corporation (APAC) - the owner of Melbourne and Launceston airports - on behalf of various investors (the Dexus Bloc), is facing allegations from the APAC board of breaching confidentiality.

Last year, Dexus was appointed by some Dexus Bloc shareholders to conduct a sale process for their stakes.

The APAC board has since issued a notice alleging that Dexus used a confidentiality deed poll and disclosed confidential information in the Dexus Bloc sale process. This would constitute a breach of the APAC Shareholders' Deed, according to the allegations made.

It's been reported that IFM Investors, which owns 25% of APAC, is leading the legal action against Dexus with the backing of other APAC shareholders, including the Future Fund, NSW TCorp, and Morrison-managed Utilities Trust of Australia.

Dexus, however, said a valid notice would require the commencement of a compulsory process to offer for sale the shares comprising the Dexus Bloc to remaining APAC Shareholders at an assessed fair market value.

It would also require an immediate suspension of certain governance, voting, and information rights of Dexus Bloc shareholders.

"Dexus intends to dispute the validity of the notice, has always acted in good faith, and will vigorously defend its position and its clients' interests," the company said.

"Dexus will continue to assess potential impacts of this matter and will provide further updates in accordance with its disclosure obligations."

The Dexus Bloc represents around 10% of Dexus' total third-party funds under management and accounts for approximately $15 million of its management fees post tax.