- Sydney Airport (SYD) rejects the takeover proposal it received last week, arguing the offer undervalues Australia’s largest aviation hub
- On July 5, a consortium offered to purchase all of the shares in Sydney Airport for $8.25 each, valuing the company at $22.26 billion
- A number of factors were cited in rejecting the proposal, including the “opportunistic timing” of the offer given the impact of COVID-19
- Shares are in the grey at $7.80 apiece at 10:27 am AEST
Sydney Airport (SYD) has rejected the takeover proposal it received last week, arguing the offer undervalues Australia’s largest aviation hub.
On July 5, a consortium of infrastructure investors — including IFM Investors, pension fund QSuper and Global Infrastructure Management — offered to purchase all of the shares in Sydney Airport for $8.25 each.
The deal values the airport at roughly $22.26 billion, and would have been one of Australia’s largest buyouts since Unibail-Rodamco’s purchase of Westfield Group for $33 billion in 2017.
Citing a number of factors behind the decision, Sydney Airport said its “strategic and irreplaceable nature” made it one of the country’s most important infrastructure assets — “the gateway to international travel in and out of Australia”.
The airport operator also noted the “opportunistic timing” of the proposal given the impact of COVID-19, and said the offer was below Sydney Airport’s pre-pandemic share price.
“The Boards recognise that the security price is likely to trade below the consortium proposal’s indicative price in the short term, however Sydney Airport will only progress a change in control transaction on terms that deliver and recognise appropriate long term value for Sydney Airport security holders,” the company said in a statement.
“The Boards and management will continue to operate the airport with the objective of maximising long term securityholder value.”
Shares were in the grey at $7.80 apiece at 10:27 am AEST.