Sydney Airport agrees $17.5bn takeover
By Abigail Townsend
Date: Monday 08 Nov 2021
(Sharecast News) - Sydney Airport has agreed to be taken over in a $17.5bn deal, it was announced on Monday, as international travel resumed after more than a year of strict lockdown restrictions.
The airport is being acquired by Sydney Aviation Alliance, a consortium of investment and infrastructure funds led by Melbourne's IFM Investors, for AUD23.6bn ($17.5bn) or AUD8.75 per share, a 6.3% premium to Friday's closing price.
Two previous offers, of AUD8.25 and AUD8.45, had both been rejected, with Sydney Airport citing at the time an expected rebound in demand once travel restrictions were lifted.
Chairman David Gonski said the final sweetened deal was "the culmination of months of engagement between all parties. The Sydney Airport boards believe the outcome reflects the appropriate long-term value for the airport, and unanimously recommend to the proposal to security holders".
Australia was one of the first countries to close its borders, and strict restrictions on international travel were not eased until last week. Fully vaccinated people and children under 12 can now fly overseas without needing an exemption, although certain restrictions remain, including needing to take a PCR test before travel.
Shares in Sydney Airport closed nearly 3% higher on Monday, at AUD8.46.
The final shareholder vote on the deal is expected to take place in the first quarter of 2022.
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