Dexus shareholders are still coming to terms with Justice David Hammerschlag’s decision last Friday that the company’s attempts to sell lucrative shares in Australia Pacific Airports Corporation (APAC) were, in fact, a breach of its duties.The looming forced sale of Dexus’ $4 billion holding managed for investors in APAC (which owns Melbourne Airport) won’t only be a gargantuan hit to its future earnings, but it is also one of the most spectacular own goals in the history of asset management.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
JPMorgan senior banker’s ‘oh s---’ moment
Messages in the court case involving Dexus and Melbourne Airport reveal just how early bankers advising on the deal lost their heads.
TL;DRAI
Dexus must divest its $4 billion stake in Australia Pacific Airports Corporation after Justice Hammerschlag ruled the attempted share sale breached fiduciary duties owed to fund investors. For asset managers running infrastructure mandates, the ruling sets a hard precedent: discretionary liquidation decisions on held assets carry material legal exposure under fiduciary frameworks, regardless of commercial rationale.
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