Sending the shares up as much as 38%, a A$22.26 billion cash buyout of the operator of Australia’s biggest airport has been proposed by a consortium of infrastructure investors, as said by Sydney Airport Holdings Pty limited on Monday. Eclipsing the spin-off of Endeavour Group Limited along with Star Entertainment Group Limited which was an $8.1 billion and $7.3 billion bid respectively for Crown resorts limited, in Australia this year, it shall prove to be the biggest such deal if successful.
A 42% premium to the stock’s closing price on Friday which is A$8.25 per Sydney airport share has been offered by a consortium that comprises IFM Investors along with pension fund QSuper and Global Infrastructure Partners which is jointly called the Sydney Aviation Alliance. On Monday, although they later fell back to around A$7.68 its shares were trading at as much as A$8.04.
Saying that it was reviewing the proposal, It was noted by the Sydney airport that the offer is below its pre-pandemic share price which is contingent on allowing access to due diligence and also in the absence of a superior offer recommending it to shareholders.
The ownership could be brought in line with the country’s other major airports which are owned by consortia of infrastructure investors through a successful deal. The company is the only one in Australia to be a listed airport operator. Funds are looking at infrastructure investment to obtain higher yields as the interest rates are at record lows.