MIAMI – A bid for the takeover of Sydney Kingsford-Smith International Airport (SYD), valued at US$16.7bn (A$22.3bn), has been made by a consortium of investors, reaching record investments made in Australia and showcasing an optimistic bet on post-COVID travel recovery.
According to a source from SYD as reported by ABC.net.au, the unsolicited bid was made by an investors group, including IFM Investors, QSuper, and Global Infrastructure Management, with an offer of US$6.20 (A$8.25) per share. This represents an increase of 42% over the latest trading quote of US$4.36 (A$5.81) but lower than the US$6.76 (A$9) reached shortly before the crisis.
Striking while the Iron Is Hot
The takeover bid comes at a particular moment where airports are globally and negatively affected by the reduction in aircraft movements and travelers traffic affecting revenues and, consequently, shares value. The bid will be deeply analyzed to ascertain it respects the intrinsic value of the airport.
The members of the investor’s group are not new in the business since they already hold interests in other Australian and international airports. IFM has invested in Melbourne (MEL), Brisbane (BNE), Perth (PER), and Adelaide (ADL) while QSuper has shares in London-Heathrow (LHR), and Global Infrastructure Management in London-Gatwick (LGW).
The offer is conditional on UniSuper, Sydney Airport’s largest stakeholder with a 15% stake, agreeing to reinvest its interest in the consortium’s investment vehicle in exchange for an equivalent equity position rather than getting cash.
Article sourced from Bloomberg, ABC News Australia, The Sunday Morning Herald
Featured image: Sydney Kingsford-Smith Airport. Photo: Simon Sees from Australia, CC BY 2.0, via Wikimedia Commons