- Country’s biggest airport – Sydney Airport, lands on AU$23.6 billion takeover bid.
- Sydney Aviation Alliance will acquire 100% shares of SYD.
- This has been one of the biggest buyouts in the country so far.
On Monday, Sydney Airport (ASX:SYD) announced to enter a Scheme Implementation Deed (SID) with Sydney Aviation Alliance Pty Limited (SAA) for AU$23.6 billion. Now Sydney Aviation, which is an entity controlled by Sydney Aviation Alliance, will hold 100% shares of SYD.
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SAA comprises of various infrastructure and investment funds managed by IFM Australia Infrastructure Fund, Australia Super, QSuper, IFM Global Infrastructure Fund and the Global Infrastructure Partners.
Unanimously recommended by the board, SYD shareholders voted in the favor of the Scheme meetings which are subject to various conditions.
Under the schemes, Sydney Airport shareholders will receive AU$8.75 cash on per stapled security.
UniSuper Limited will transfer 15.01% of its existing interest in Sydney Airport to hold an equal interest in the holding structure of the Consortium.
The Scheme Consideration values SYD’s share at almost AU$23.6 billion representing an uplift in its equity value at AU$1.3 billion to the initial offered price of AU$8.25 in July 2021.
This deal has also increased AU$7.9 billion to SYD’s share price prior to its announcement of the receipt of Indicative Proposal.
Schemes are subject to approval by the SYD shareholders at a Scheme meeting, anticipated to be held in the first quarter of FY22.
In July, SYD announced to receive an unsolicited, indicative conditional and non-binding proposal from SAA to acquire 100% of SYD’s stapled securities at a price of AU$8.25 per security, which was rejected. As a result, SYD received another revised proposal from the Consortium in August, at a revised indicative price of AU$8.45 per share subject to terms and conditions.
However, SYD again announced to receive a revised proposal for AU$8.75 per stapled security with an indicative proposal along with revised indicative proposal in September. After completion of a four-week non-exclusive due diligence period, SYD has now entered the SID with SAA.
The stock SYD closed 2.794% higher at AU$8.460 per share today.