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SYDNEY (Reuters) - Sydney Airport Holdings Pty Ltd said on Thursday it would reject a A$22.26 billion ($16.6 billion) takeover proposal from a group of infrastructure funds, the biggest of a frenzy of Australian deals fuelled by record-low interest rates.
FILE PHOTO: People walk through the domestic terminal at Sydney Airportin Sydney, Australia, December 21, 2020. REUTERS/Loren Elliott
The operator of Australia’s largest airport said directors had unanimously concluded the proposal undervalued the airport and was not in the best interest of shareholders. If successful, it would have been one of Australia’s biggest buyouts.
Record-low interest rates have prompted pension funds and their investment managers to chase higher yields, leading to recent asset purchases from Telstra Corp and Qube Holdings.
Board says proposal undervalues airport
Would have been one of Australia s biggest buyouts
SYDNEY, July 15 (Reuters) - Sydney Airport Holdings Pty Ltd (SYD.AX) said on Thursday it would reject a A$22.26 billion ($16.6 billion) takeover proposal from a group of infrastructure funds, the biggest of a frenzy of Australian deals fuelled by record-low interest rates.
The operator of Australia s largest airport said directors had unanimously concluded the proposal undervalued the airport and was not in the best interest of shareholders. If successful, it would have been one of Australia s biggest buyouts.
Record-low interest rates have prompted pension funds and their investment managers to chase higher yields, leading to recent asset purchases from Telstra Corp (TLS.AX) and Qube Holdings (QUB.AX). read more
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Tony Yoo is a senior journalist at The Motley Fool Australia. He formerly wrote for Yahoo Finance, Business Insider and Guardian Australia. Please send story tips to tony.yoo(at)foolcontractors.com. Tony s stock holdings are here.
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Can you believe it? We’re already into the second half of 2021 and August reporting season is only a fortnight away.
Sydney Airport board rejects $16.6 billion buyout proposal
By Jamie Freed
Reuters
SYDNEY (Reuters) -Sydney Airport Holdings Pty Ltd said on Thursday it would reject a A$22.26 billion ($16.6 billion) takeover proposal from a group of infrastructure funds, the biggest of a frenzy of Australian deals in reaction to record-low interest rates.
The operator of Australia s largest airport said directors had unanimously concluded the proposal undervalued the airport and was not in the best interest of shareholders. If successful, it would have been one of Australia s biggest buyouts.
Record-low interest rates have prompted pension funds and their investment managers to chase higher yields, leading to recent asset purchases from Telstra Corp and Qube Holdings.
Sydney Airport (ASX:SYD) share price on watch after takeover bid rejected
The board says the offer is opportunistic and undervalues the company.
Marc is a Master of Journalism and Communications student at UNSW and journalist at The Motley Fool. He has a passion for journalism and news with a keen interest in business, the media, politics, foreign affairs, and how they intersect in everyday life.
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The
Let’s take a closer look at today’s news.
Board says no
In a statement to the ASX, Sydney Airport advised it has turned down the offer from a consortium of infrastructure investors to buy 100% of its shares at $8.25 apiece.