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Analysis
During 18 months of the COVID-19 pandemic there has been precious little M&A activity in the airports sector apart from Brazil and Japan, where the groundwork had been long been laid anyway.
Many people have openly speculated when it would start up again, but all have been blindsided by an out-of-left-field proposal by an Australian/US consortium to take over Sydney Airport in what would be Australia’s biggest corporate transaction and the biggest single one in the airports sector for many a year.
No sooner had analysts picked themselves up than another major player in the sector was reported to be considering forming a consortium for a counter-proposal.
ACCC to take ‘very close look’ at Sydney Airport bid issues By Neil Griffiths 12 July 2021
The ACCC has confirmed it will take a “very close look” at a super fund consortium’s bid to purchase Sydney Airport.
Earlier this month, the Sydney Aviation Alliance – made up of QSuper, IFM Australian Infrastructure Fund, the IFM Global Infrastructure Fund and Global Infrastructure Partners (GIP) – submitted a $22.3 billion proposal to acquire all of the stapled securities in Sydney Airport Limited and Sydney Airport Trust 1 via a scheme of arrangement and a trust scheme.
The regulator told InvestorDaily it will look at “relevant competition issues” given that IFM, GIP and QSuper are involved with other local airports.
Chinese geopolitics hover over Sydney Airport bid
Chinaâs belligerent campaign to punish Australian exports seems certain to play a critical role in the $22 billion takeover of Sydney Airport, once the gateway to a burgeoning Chinese tourism industry.
Jul 8, 2021 â 10.19am
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Sydney Airport chairman David Gonskiâs quest to squeeze a higher takeover offer out of David Neal at the Sydney Aviation Alliance will be helped by talk of a Macquarie Group-led consortium making an offer.
The other big swing factor in terms of valuation of Sydney Airport is the outlook for international tourist traffic - and the key to that is China.
05 Jul 2021
Sydney Airport has received an unsolicited, indicative, conditional and non-binding proposal from a consortium of infrastructure investors to acquire the company.
In an ASX announcement this morning, Sydney Airport said the consortium’s takeover offer is by way of a scheme of arrangement and trust scheme for 100 per cent of stapled securities in the company at an indicative price of $8.25 each, which equates to a valuation of more than $22 billion.
The consortium comprises IFM Investors as trustee for IFM Australian Infrastructure Fund, Conyers Trust Company as trustee for IFM Global Infrastructure Fund, QSuper Board as trustee for QSuper, and Global Infrastructure Management LLC.