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Sydney Aviation Alliance to purchase Sydney Airport (ASX:SYD) for $23.6b

ASX 200, Economy
ASX:SYD
08 November 2021 14:26 (AEST)

Source: Sydney Airport/LinkedIn

Sydney Airport (SYD) has entered into a scheme implementation deed with Sydney Aviation Alliance (SAA).

Under the scheme, SAA intends to purchase Sydney Airport for $23.6 billion just as Australia reopens its borders to international travel.

The offer will se eligible SYD security holders receive $8.75 per stapled security.

SAA comprises of various investment and infrastructure funds affiliated with or managed by IFM Australian Infrastructure Fund, IFM Global, AustralianSuper, QSuper and Global Infrastructure Partners.

Under the acquisition, UniSuper will transfer its existing 15.01 per cent interest in Sydney Airport for an equivalent interest in the holding structure of the Consortium.

However, the deal is subject to a number of various conditions, such as shareholder approval.

The Sydney Airport Board has unanimously recommended that shareholders vote in favour of the scheme. Notably, each member of SYD Board intends to vote yes to the deal.

Scheme meetings are expected to be held in the first quarter of 2022 and the deal will need 75 per cent of all votes casted.

Chairman David Gonski said today’s announcement follows months of engagement between all parties.

“The Sydney Airport Board believes the outcome reflects appropriate long-term value for the airport, and unanimously recommend the proposal to securityholders, subject to customary conditions such as independent expert approval and no superior proposal.”

On the market this morning, Sydney Airport was up 2.79 per cent and is trading at $8.46 per share at 2:02 pm AEDT.

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