Sydney Airport has agreed to a A$23.6 billion ($17.4 billion) takeover offer from an investor consortium.
The airport board accepted an offer from the Sydney Airport Alliance (SAA) for A$8.75 cash per share, a number first mooted in September, says the Sydney Airport in a stock exchange release. In June, the airport operator had rebuffed a previous offer of $8.25 per share.
The arrangement is designated a Scheme Implementation Deed, and shareholders will be able to vote on it in the first quarter of 2022. The board unanimously recommends that shareholders vote in favor of the transaction.
“Today’s announcement is the culmination of months of engagement between all parties,” says Sydney Airport chairman David Gonski.
“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 customer conditions such as independent expert approval and no superior proposal.”
The SAA consortium comprises fund managers IFM Investors and Global Infrastructure Partners, as well as Australian superannuation funds QSuper and AustralianSuper.
The announcement comes as Australian air travel gets back on its feet with Covid-19 vaccinations going well in the country. Domestic travel has resumed, and the country is making tentative steps to reopen international markets.
During the coronavirus pandemic, Australia was largely locked down. The arrival of the Delta variant was especially problematic in the middle of 2021, largely stopping air travel in the country.