Sydney Airport surged by over a third on Monday after it announced a takeover proposal from a consortium of infrastructure investors to acquire 100% of the company at an indicative price of $8.25 cash per share.
The consortium comprising of IFM Investors, Conyers Trust Company, QSuper Board, and Global Infrastructure Management, made the indicative proposal subject to several conditions, leading the Sydney Airport Boards to commence an assessment of the proposal. Consequentially appointing Barrenjoey and UBS as its financial advisers and Allens as its legal adviser.
The Sydney Airport Boards noted that Sydney Airport is a world-class airport and one of Australia’s most important infrastructure assets. It is Australia’s largest airport and is the gateway to international travel in and out of Australia. The proposal has been made during a global pandemic that has deeply affected the aviation industry and the Sydney Airport security price.
The indicative price is below where Sydney Airport’s security price traded before the pandemic. As a result, the Boards are undertaking a detailed analysis of, amongst other things, whether the proposal is reflective of the underlying value of the airport given its long-term remaining concession and the expected short-term impact of the pandemic.
Sydney Airport shareholders have been advised they do not need to take any action at this stage, given there is no certainty that the proposal will result in a transaction.