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Sydney Airport (ASX:SYD) - CEO, Geoff Culbert
CEO, Geoff Culbert
Source: Daily Telegraph
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  • Sydney Airport (SYD) receives a takeover offer from a consortium of infrastructure investors looking to capitalise on the rebounding aviation sector
  • The group has offered to purchase all of the shares in Sydney Airport for $8.25 each — a 42 per cent premium to its closing price of $5.81 last week
  • The deal values Sydney Airport at roughly $22.26 billion, but the indicative offer price is below its pre-pandemic high
  • Its share price hit a record high of $8.86 in January last year, just before the pandemic led to a collapse in travel demand
  • Shares in Sydney Airport are up 36.23 per cent to $7.92 per share at 10:36 am AEST

Sydney Airport (SYD) has received a takeover offer from a consortium of infrastructure investors looking to capitalise on the rebounding aviation sector.

The group, consisting of IFM Investors, pension fund QSuper and Global Infrastructure Management, offered this morning to purchase all of the shares in Australia’s largest airport for $8.25 each, representing a 42 per cent premium to its closing price of $5.81 last week.

While the deal values Sydney Airport at roughly $22.26 billion, the company said the proposal was made during a global pandemic that has significantly impacted the aviation sector and the airport’s share price.

“The indicative price is below where Sydney Airport’s security price traded before the pandemic,” the company said in a statement.

“The Boards are undertaking detailed analysis of, amongst other things, whether the proposal is reflective of the underlying value of the airport given its long-term remaining concession and the expected short-term impact of the pandemic.”

Sydney Airport’s share price hit a record high of $8.86 in January last year, just before the pandemic led to a collapse in travel demand.

In May, the airport’s international traffic was down more than 93 per cent compared to the same period of 2019 due to Australia’s tightly restricted border, while domestic traffic was down 39.2 per cent.

Completion of the deal remains subject to a number of conditions including UniSuper, which holds a 15 per cent interest, agreeing to reinvest its equity stake for an equivalent equity holding in the super consortium’s vehicle.

Shares in Sydney Airport are up 36.23 per cent to $7.92 per share at 10:36 am AEST.

SYD by the numbers
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