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Sydney Airport has received a 22.3 billion Australian dollars ($ 17 billion) takeover offer from a group including IFM Investors, in one of the boldest bets since the pandemic on a resumption of travel in the world.
The consortium offered A $ 8.25 per share, Sydney Airport said in a statement on Monday. He said he was evaluating the offer, which is 42% higher than Friday’s closing price of AU $ 5.81. The stock was trading at nearly A $ 9 at the end of 2019, before Covid-19 devastated aviation.
Sydney Airport Offer at Premium Now, Not Pre-Covid: M&A Overview
The suitors seek to capitalize on the declining market value of Australia’s largest airport, which is also the country’s main gateway to overseas, before global travel begins to pick up. Australia’s international border, which has been largely closed since March last year, is expected to open in mid-2022 once the country’s vaccination program ends.
Sydney Airport said it was considering “whether the proposal reflects the underlying value of the airport given its remaining long-term concession and the expected short-term impact of the pandemic.”
Sydney Airport has appointed Barrenjoey Capital Partners and UBS Group AG as financial advisers.
One of the terms of the offer is that UniSuper Ltd., which owns around 15% of Sydney Airport, agrees to reinvest its stake for an equivalent stake in the consortium’s holding company, the statement said.
(Add the timing of the reopening of the Australian border in the third paragraph.)
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