Dexus (ASX:DXS) on Friday lost its court bid to block the sale of its stake in Melbourne Airport, as the New South Wales Supreme Court ruled that the company was in violation of confidentiality agreements and must dispose of the interest.
The company holds a roughly 27.3% stake in Australia Pacific Airports, which owns Melbourne's Tullamarine airport and the Launceston airport in Tasmania.
In a lawsuit, shareholders of Australia Pacific Airports claimed Dexus breached a shareholders' deed by disclosing confidential information while managing a sale process for stakes in the airports. The shareholders argued the company should be forced to sell its stake due to the breach.
"Dexus committed a material irremediable breach of the shareholders' deed," the NSW Supreme Court said in its decision as it dissolved injunctions that prevented the sale of Dexus' stake.
The company's shares are on a trading halt as it prepares a statement to the market following the court's decision.