8 Nov 2021
Sydney Airport’s $17.5 billion buyout to Prepare for Borders Reopening
The Index Today
Sydney Airport Holdings announced on Monday a takeover bid worth A$23.6 billion from one of the leading infrastructure groups in the country. The bid comes as the country prepares to ease covid restrictions and open airports for international travel.
According to statements released by the company, a scheme implementation deed was made on Monday and another is upcoming in January next year. Sydney Airport Holdings unanimously agreed to the buyout form Sydney Aviation Alliance SAA which entails investors including IFM Investors, AutralianSuper and Global Infrastructure Partners. Chairman David Gonski said, “The Sydney Aiport Boards believe the outcome reflects appropriate long-term value for the Aiport, and unanimously recommend the proposal.”
However, the deal is based on the expert report and approval of at least 75% from the shareholders. The process could take many months as regulators and The Foreign Investment Review Board must weigh in on the deal and provide a green signal to continue.
IFM Investors Chief Executive David Neal said in a statement, “We look forward to security holders voting on the proposed deal. Our alliance represents many millions of Australians and we intent to work hard to bring more flights and passengers back to the airport as the aviation industry emerges from covid-19.”
©Photo: Wikimedia Commons