Sydnei International Airport terminal 2b MDRX, CC BY-SA 4.0, via Wikimedia Commons
airports
Infrastructure
/ Oceania
Offer rejected
Group of investors offered about 16.7 billion dollars to buy Sydney Airport, but was unsuccessful
By: Rafael Ramos
On: 8/16/2021
Sydnei International Airport terminal 1
MDRX, CC BY-SA 4.0, via Wikimedia Commons
Sydney Airport rejected, on Thursday (12), a proposed acquisition of 16.7 billion dollars from a group of infrastructure investors, but said it is willing to negotiate a higher amount. This acquisition would be one of the biggest of all time in Australia.
The group, Sydney Aviation Alliance, a consortium of FM Investors, QSuper and Global Infrastructure Partners had offered A$8.25 (about $6.19) per share. The offer (larger than the previous one), totals the value of 16.72 billion dollars. On Wednesday, the share price closed at A$7.80.
Sydney Airport said it had analyzed the new offer but concluded that it still underestimated the company and was not serving shareholders' interests. He described the offer as “opportunistic” as the value of the shares fell due to the COVID-19 pandemic.
The company acknowledged on Thursday that its share price would likely trade below the consortium's target price in the near term, however it said, “Boards are open to engaging with the Sydney Aviation Alliance if the Consortium is prepared to increase its indicative price to properly recognize long-term value to Sydney Airport security holders”.
Sydney airport is resuming its pre-pandemic demand, along with advancing vaccination in the country. Despite a significant increase in demand last July, the airport still operates at very low levels when compared to levels seen before the health crisis.
The purchase of the airport would be a bet on the long-term recovery of the pre-pandemic movement.
Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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