AUSTRALIA. The Sydney Airport Board of Directors has recommended that shareholders accept an A $ 23.6 billion (US $ 17.35 billion) ownership offer from a group of investors.
In September, the Sydney Aviation Alliance released a revised indicative proposal of A $ 8.75 in cash per stapled title, down from A $ 8.25 on July 5, then raised to A $ 8.45 on August 16. The alliance includes IFM Investors, the QSuper pension fund and Global Infrastructure Management.
Sydney Airport President David Gonski said: “Today’s announcement is the culmination of months of engagement between all parties. Sydney Airport Boards believe the result reflects an appropriate long-term value for the airport and unanimously recommend the proposal to security holders, subject to customary conditions such as approval of ‘an independent expert and no superior proposition.
Analysts previously commented that a competing bid was unlikely to succeed given the scale of the funding required as well as foreign ownership rules which mean Sydney airport must remain 51% Australian owned.