AUSTRALIA. The board of Sydney Airport has recommended that shareholders accept a A$23.6 billion (US$17.35 billion) offer for ownership from a group of investors.
In September the Sydney Aviation Alliance issued a revised indicative proposal for A$8.75 cash per stapled security, compared to an initial A$8.25 on 5 July, later raised to A$8.45 on 16 August. The alliance includes IFM Investors, pension fund QSuper and Global Infrastructure Management.
Sydney Airport Chairman David Gonski said: “Today’s announcement is the culmination of months of engagement between all parties. The Sydney Airport Boards believe the outcome reflects appropriate long-term value for the airport, and unanimously recommend the proposal to security holders, subject to customary conditions such as independent expert approval and no superior proposal.”
Analysts commented previously that any rival bid was unlikely to succeed given the scale of funding required along with foreign ownership rules that mean Sydney Airport must remain 51% Australian-held.
