Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Sydney Airport (SYD) rejects the takeover proposal it received last week, arguing the offer undervalues Australia’s largest aviation hub
  • On July 5, a consortium offered to purchase all of the shares in Sydney Airport for $8.25 each, valuing the company at $22.26 billion
  • A number of factors were cited in rejecting the proposal, including the “opportunistic timing” of the offer given the impact of COVID-19
  • Shares are in the grey at $7.80 apiece at 10:27 am AEST

Sydney Airport (SYD) has rejected the takeover proposal it received last week, arguing the offer undervalues Australia’s largest aviation hub.

On July 5, a consortium of infrastructure investors — including IFM Investors, pension fund QSuper and Global Infrastructure Management — offered to purchase all of the shares in Sydney Airport for $8.25 each.

The deal values the airport at roughly $22.26 billion, and would have been one of Australia’s largest buyouts since Unibail-Rodamco’s purchase of Westfield Group for $33 billion in 2017.

Citing a number of factors behind the decision, Sydney Airport said its “strategic and irreplaceable nature” made it one of the country’s most important infrastructure assets — “the gateway to international travel in and out of Australia”.

The airport operator also noted the “opportunistic timing” of the proposal given the impact of COVID-19, and said the offer was below Sydney Airport’s pre-pandemic share price.

“The Boards recognise that the security price is likely to trade below the consortium proposal’s indicative price in the short term, however Sydney Airport will only progress a change in control transaction on terms that deliver and recognise appropriate long term value for Sydney Airport security holders,” the company said in a statement.

“The Boards and management will continue to operate the airport with the objective of maximising long term securityholder value.”

Shares were in the grey at $7.80 apiece at 10:27 am AEST.

SYD by the numbers
More From The Market Herald
Carsales (ASX:CAR) - Managing Director and CEO, Cameron McIntyre

" Carsales.com (ASX:CAR) raises $842m for Trader Interactive acquisition

Carsales.com (ASX:CAR) has raised $842 million from its institutional entitlement offer to help fund its acquisition…
The Market Herald Video

" Pilbara Minerals (ASX:PLS) set to increase production at Pilgangoora

Pilbara Minerals (ASX:PLS) is set to increase spodumene production at its Pilgangoora operation to 680,000 dry…
The Market Herald Video

" Liontown Resources (ASX:LTR) lands offtake agreement with Ford, reaches FID decision

Liontown Resources (ASX:LTR) has executed a binding offtake agreement and funding facility with global automaker, Ford.
The Market Herald Video

" Northern Star Resources (ASX:NST) looks to expand Kalgoorlie Super Pit

Gold miners Northern Star Resources (ASX:NST) flags potential to spend up to $1.4 billion to expand…