Invest
New and improved takeover bid sees Sydney Airport open books
The Sydney Aviation Alliance consortium, led by the IFM Investors, has been granted access to Sydney Airport books after submitting a revised acquisition proposal.
New and improved takeover bid sees Sydney Airport open books
The Sydney Aviation Alliance consortium, led by the IFM Investors, has been granted access to Sydney Airport books after submitting a revised acquisition proposal.
Sydney Airport has confirmed it has received a revised indicative, conditional and non-binding proposal from the Sydney Aviation Alliance at an indicative price of $8.75, more than the indicative and non-binding offer it made earlier at $8.25 a security.
In a statement to the market on Monday, Sydney Airport confirmed the further revised, indicative proposal follows two previous proposals — in July and August — both of which the boards determined to not be in the best interests of Sydney Airport securityholders.
As such, the airport confirmed it will be granting the consortium the opportunity to conduct due diligence on a non-exclusive basis to enable it to put forward a binding proposal.
Should the consortium make a binding offer at $8.75 following the four-week due diligence, in the absence of a superior proposal, the airport confirmed the current intention of the boards is to “unanimously recommend that securityholders vote in favour of the proposal”.
In announcing its rejection of August’s bid, Sydney Airport said it did not believe the current environment “[changed] the boards’ view of long-term value” and that the revised offer was “opportunistic in light of the pandemic”.
“The boards note the rapid increase and acceleration in Australian vaccination rates in recent weeks and governments’ plans to progressively ease restrictions as the population reaches vaccination targets which will then see the reopening of travel,” the group said.
“Sydney Airport remains strongly positioned, has strengthened its balance sheet and tightly managed costs to maintain flexibility to respond to a range of recovery scenarios and to pursue sensible growth opportunities as the recovery unfolds.
“The boards are open to engaging with Sydney Aviation Alliance should the consortium be prepared to lift its indicative price to appropriately recognise long-term value for Sydney Airport securityholders.”
The revised proposal values Sydney Airport’s equity at over $30 billion.
RELATED ARTICLES
About the author
About the author
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
Economy
Australian founders adapt to the challenging fundraising environment with optimism and strategic shifts
The landscape for start-up funding in Australia has been increasingly challenging, but this has not dampened the spirit of the country's entrepreneurs. Read more
Economy
Signs point to possible US economic 'soft landing' in ClearBridge analysis
The US economy may be steering towards a 'soft landing' despite mixed signals from the stock market, according to a recent analysis by ClearBridge Investments. Read more
Economy
Alternative fund managers predict capital raising surge in 2024
Alternative investment fund managers are predicting a sizable increase in capital raising efforts in 2024, according to a global study by Ocorian, a leading alternative investment fund administratorRead more
Economy
Understanding the economic indicators that affect your earnings
The landscape of personal finance is profoundly influenced by broader economic trends and indicators. Read more
Economy
Navigate market turbulence with expert advice: no crystal ball needed
In an era fraught with investment market uncertainties, from fluctuating interest rates to geopolitical strife, seasoned market experts are guiding investors through the mire, offering sage advice on ...Read more
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
Economy
Australian founders adapt to the challenging fundraising environment with optimism and strategic shifts
The landscape for start-up funding in Australia has been increasingly challenging, but this has not dampened the spirit of the country's entrepreneurs. Read more
Economy
Signs point to possible US economic 'soft landing' in ClearBridge analysis
The US economy may be steering towards a 'soft landing' despite mixed signals from the stock market, according to a recent analysis by ClearBridge Investments. Read more
Economy
Alternative fund managers predict capital raising surge in 2024
Alternative investment fund managers are predicting a sizable increase in capital raising efforts in 2024, according to a global study by Ocorian, a leading alternative investment fund administratorRead more
Economy
Understanding the economic indicators that affect your earnings
The landscape of personal finance is profoundly influenced by broader economic trends and indicators. Read more
Economy
Navigate market turbulence with expert advice: no crystal ball needed
In an era fraught with investment market uncertainties, from fluctuating interest rates to geopolitical strife, seasoned market experts are guiding investors through the mire, offering sage advice on ...Read more
