SYDNEY Airport Holdings said on Monday it has agreed to accept an A$23.6 bil (US$17.46 bil) takeover bid from an infrastructure investor group in one of Australia’s biggest ever buyouts.
The board of country’s biggest airport said in a statement that it unanimously recommended the buyout offer from Sydney Aviation Alliance (SAA) which comprised of Australian investors IFM Investors, QSuper and AustralianSuper and US-based Global Infrastructure Partners.
“The Sydney Airport Boards believe the outcome reflects appropriate long-term value for the airport, and unanimously recommend the proposal to shareholders,” its chairman David Gonski said.
A scheme implementation deed had been made on Monday and a scheme meeting would take place in January, the company said.
The deal to buy Australia’s 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.
It follows a sweetened offer by SAA of A$8.75 a share in September – 3.6% higher than its first approach – that 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 the competition regulator and the Foreign Investment Review Board.
“We look forward to shareholders voting on the proposed deal,” SAA said in a statement.
“Our alliance represents many millions of Australians … and we intend to work hard to bring more flights and passengers back to the airport as the aviation industry emerges from COVID-19.”
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. – Nov 8, 2021
Pic credit: The West Australian
