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The airport operator’s share price hit a record high of A$8.86 in January last year, before the pandemic led to a collapse in travel demand.
The company is Australia’s only listed airport operator, with the remainder of the country’s major airports owned by consortiums of infrastructure investors.
In May, Sydney Airport’s international traffic was down more than 93% from levels in the same month of 2019 due to Australia’s largely closed border, while domestic traffic was down 39.2%.
IFM, QSuper and Global Infrastructure did not immediately respond to a request for comment.
Their offer is contingent on UniSuper, which holds a 15% stake, agreeing to reinvest its equity interest for an equivalent equity holding in the consortium’s vehicle, Sydney Airport said.
Sydney Airport receives $16.7b buyout bid from consortium of infra investors
Photo: Fred Rivett / Unsplash
July 5, 2021
A group of infrastructure investors has proposed a A$22.26 billion ($16.7 billion) buyout of Sydney Airport Holdings Pty Ltd, the operator of Australia’s biggest airport, taking a longer-term view on the pandemic-battered travel sector.
Record-low interest rates have led pension funds and their investment managers to chase higher yields. The purchase, with an enterprise value of A$30 billion including debt, would allow them to reap financial benefits when borders reopen and travel demand rebounds.
If successful, the deal would be Australia’s biggest this year, eclipsing the $8.1 billion spin-off of Endeavour Group Ltd and Star Entertainment Group Ltd’s $7.3 billion bid for Crown Resorts Ltd.
Publishing date: Jul 04, 2021 • 4 hours ago • 2 minute read •
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SYDNEY Sydney Airport Holdings Pty Ltd said on Monday a consortium of infrastructure investors had proposed a A$22.26 billion ($16.7 billion) cash buyout of the operator of Australia’s biggest airport, sending its shares up as much as 38%.
If successful, it would be the biggest such deal in Australia this year, eclipsing the $8.1 billion spin-off of Endeavour Group Ltd and Star Entertainment Group Ltd’s $7.3 billion bid for Crown Resorts Ltd.
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