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Super fund investors bid to acquire Sydney Airport

  • July 06 2021
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Super fund investors bid to acquire Sydney Airport

By Maja Garaca Djurdjevic
July 06 2021

A group of super fund investors has lodged a non-binding takeover bid for Sydney Airport, valuing the company at over $22 billion.

Super fund investors bid to acquire Sydney Airport

Super fund investors bid to acquire Sydney Airport

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  • July 06 2021
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A group of super fund investors has lodged a non-binding takeover bid for Sydney Airport, valuing the company at over $22 billion.

Super fund investors bid to acquire Sydney Airport

A consortium of superannuation fund investors, including IFM Investors, QSuper and Global Infrastructure Management, has lodged an “unsolicited”, non-binding proposal to purchase Sydney Airport at $8.25 per share, the latter revealed in a filing with the ASX.

Sydney Airport confirmed that its board has commenced an assessment of the proposal but noted that the pandemic’s devastating impacts on the aviation industry have drastically reduced the airport’s share price.

“The indicative price is below where Sydney Airport’s security price traded before the pandemic,” the filing read.

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“The boards are undertaking detailed analysis of, among other things, whether the proposal is reflective of the underlying value of the airport given its long-term remaining concession and expected short-term impact of the pandemic,” it continued.

While noting there is no certainty that the proposal will result in a transaction, Sydney Airport revealed that the deal is conditioned on UniSuper – which currently owns a 15 per cent stake in the airport – reinvesting its interest for an equivalent interest in the consortium’s holding vehicle, rather than receive cash for its stake.

Other conditions include a “satisfactory” due diligence assessment.  

Following the announcement, the Sydney Airport’s shares lifted drastically to $7.63 from Friday’s $6.77.

Super fund investors bid to acquire Sydney Airport
Super fund investors bid to acquire Sydney Airport
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About the author

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Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

About the author

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Maja Garaca Djurdjevic

Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

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