An infrastructure consortium proposed a A$22.3 billion ($16.8 billion) buyout bid for the operator of Sydney International Airport (SYD). The proposal makes one of the largest Australia’s buyout bids ever.
Sydney Airport (SYD) announced it got an unsolicited, conditional, and non-binding proposal from the consortium to acquire 100% of SYD shares at an indicative A$8.25 cash per stapled security. The proposal comes when interest rates are at record low due to the ongoing pandemic.
“The Boards are undertaking detailed analysis of, amongst other things, whether the proposal is reflective of the underlying value of the airport given its long-term remaining concession and the expected short-term impact of the pandemic,” read the Sydney Airport statement published on July 5, 2021.
The consortium comprises IFM Investors, Conyers Trust Company, QSuper Board, and Global Infrastructure Management.
Sydney Airport is the largest airport in the country and Australia’s one of the most important infrastructure assets. Total passenger traffic in May 2021 was 1,435,000 passengers, down by 59.1% on the corresponding period in 2019. Domestic passenger traffic totalled 1,347,000 in May 2021, down 39.2% against the 2019 levels, as per SYD data.