Press "Enter" to skip to content

Sydney Airport Agrees to $17.5bn Buyout Deal

Sydney Airport Holdings said on Monday it has agreed to accept a $17.5 billion takeover bid from an infrastructure investor group in one of Australia’s biggest buyouts. The company said in a statement it unanimously recommended the buyout offer from Sydney Aviation Alliance (SAA), comprised of Australian investors IFM Investors, QSuper, AustralianSuper and U.S.-based Global Infrastructure Partners.

The deal to buy Australia’s largest and only listed airport operator comes as the country this month eased its international border restrictions for the first since the beginning of the coronavirus pandemic. The company said a scheme implementation deed had been made on Monday and a scheme meeting would take place in January.

It follows a sweetened offer by Sydney Airport A — 6% higher than its first approach at A$8.25 — which convinced the company’s board to give the consortium access to due diligence. The deal is conditional on an independent expert’s report, approval from 75% of the airport operator’s shareholders and a green light from competition regulators and the Foreign Investment Review Board, a process that could take months.

The Australian Competition and Consumer Commission is investigating the transaction’s impact on competition, including the impact of the consortium’s ownership of multiple airports in the country. It is due to release its findings on Dec.16. IFM Investors owns large stakes in airports in other Australian state capitals, including Brisbane and Melbourne.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *