Sydney Airport lands on AU$23.6 billion takeover deal

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Sydney Airport lands on AU$23.6 billion takeover deal

ASX Sydney Airport lands on AU$23.6 billion takeover deal
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Highlights 

  • 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.

Key highlights:

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.

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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.

Background

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.

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