Dexus directors are removed from the board of Australia Pacific Airports Corporation, the vehicle that owns Melbourne Airport, just as a forced sale of its stake gathers pace.
A Supreme Court decision found Dexus had materially breached a decades-old shareholder agreement.
Shareholders led by IFM Investors are now pushing ahead to dispose of Dexus’ 27.3% interest.
Pressure is building quickly on the property group’s most prized airport holding.
Australia Pacific Airports Corporation controls both Melbourne and Launceston airports, making its shareholder base strategically important for infrastructure investors.
The recent court ruling by a Supreme Court justice concluded last month that Dexus broke key terms of a shareholder agreement that dates back around 30 years.
APAC has suspended Dexus’ representatives from its board after a brief directions hearing.
The group must now decide whether to challenge the adverse judgment or negotiate on the terms of its exit.
Two senior figures from Dexus’ infrastructure team have been stripped of their APAC board positions as part of the fallout.
One is the executive general manager of growth markets and the other is the head of asset management for infrastructure.
Their removal shows that control over governance at the airport company is shifting firmly towards other investors, particularly IFM Investors.
Dexus has been given until June 26 to lodge an appeal, leaving a tight window to fight the finding of material breach.
The dispute will test how long-standing shareholder arrangements hold up when large infrastructure assets change hands and strategies.
APAC’s other owners, including IFM Investors, are focused on resolving what they regard as a broken governance framework.
A forced sale of a 27.3% stake in Melbourne Airport’s owner could reshape the airport’s investor register and influence future capital decisions.
For now, Dexus faces the twin challenges of protecting its legal position and salvaging value from an investment that suddenly sits on shaky ground.
