PHOTO: Sydney, Australia
A $23.6 billion takeover bid for Sydney Airport remains a good chance of progressing as the two groups work towards a deal.
A group of investors and the airport board continue to discuss the proposal after a four-week period for the former to examine the financials of its target concluded.
Sydney Airport on Monday said its board members continued to negotiate transaction documents and, if agreed on, would unanimously recommend securityholders vote for the bid.
A third-party expert would also need to decide the proposal was in the best interest of securityholders.
The Sydney Aviation Alliance consortium, which includes IFM Investors, Queensland super fund QSuper and Global Infrastructure Partners, has offered $8.75 per stapled security.
Sydney Airport declined earlier offers from the group and said they were opportunistic.
The pandemic has caused the value of shares in some companies, such as those in travel, to drop. This has made the companies cheaper to buy.
Sydney Airport securities reached a record $9.06 in December 2019, just a few months before the pandemic.
The securities were trading for about $5 days before the investors’ first bid in July.
In August, Sydney Airport declared a first-half loss of $97.4 million due to coronavirus lockdowns.
The business also faces competition from Western Sydney Airport, due to open in 2026.
Securities in Sydney Airport on the ASX were lower by 0.84 per cent to $8.30 at 1513 AEDT.
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