Sydney Airport investors urged to ignore $22b bid
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Sydney Airportâs board has told investors the COVID-19 pandemic has hurt its shares and that they should take no action on an unsolicited $22 billion takeover bid from a group of infrastructure investors as its shares soared 29 per cent.
The board told investors that the pandemic was expected to have âa short term impactâ after a consortium of infrastructure investors made an indicative takeover offer priced at $8.25 per share.
âThe indicative proposal has been made during a global pandemic which has deeply affected the aviation industry and the Sydney Airport security price,â the airport said on Monday. âThe indicative price is below where Sydney Airportâs security price traded before the pandemic. â
Cash offer at 42% premium to last closing price on Friday
Offer contingent on UniSuper reinvesting 15% equity stake
SYDNEY, July 5 (Reuters) - A group of infrastructure investors has proposed one of Australia s biggest-ever buyouts, a A$22.26 billion ($16.7 billion) purchase of Sydney Airport Holdings Pty Ltd, taking a longer-term view on the pandemic-battered travel sector.
The proposal comes as record-low interest rates prompt 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 purchase of Australia s biggest airport would be one of the country s largest-ever by enterprise value in U.S. dollar terms, on par with the $22 billion purchase of mall operator Westfield Group by Unibail-Rodamco in 2017, Refinitiv data showed.
By Mike Cherney SYDNEY Sydney Airport Ltd., which runs Australia s biggest airport, said it received a takeover bid from a consortium of infrastructure investors and it is assessing the proposal. The consortium, including IFM Investors, QSuper and Global Infrastructure Management, offered 8.25 Australian dollars ($6.20) in cash per stapled security. Sydney Airport said the offer price is below where its shares traded before the coronavirus pandemic, which brought international travel to a near halt. The airport said it is analyzing 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.
A cohort of industry super funds has made a $22 billion takeover bid for Sydney Airport Clancy Yeates, SMH
Sydney Airport has received a non-binding takeover offer from a cohort of industry superannuation fund investors looking to capitalise on the pandemic-induced weakness in the aviation sector.
ASX-listed Sydney Airport said a consortium comprising the industry super sector’s asset manager, IFM Investors, QSuper and North American pension funds Global Infrastructure Management have lobbed a bid that values the company at more than $22 billion.
At a price of $8.25 a share the offer is at a 42 per cent premium to Sydney Airport’s closing price on Friday of $5.81.