Sydney Airport rejects $17bn buyout offer
Sydney Airport has this morning rejected a $16.6bn buyout offer from a group of infrastructure fund, foiling what would have been one of Australia’s biggest takeovers.
The firm behind the airport said that its board had unanimously rejected the bid as undervaluing the firm and not being in the best interest of shareholders.
The offer is amid a spate of high-profile bids that have materialised in recent months due to record low interest rates.
Last week, the Sydney Aviation Alliance, a consortium of IFM Investors, QSuper and Global Infrastructure Partners offered A$8.25 a share, for a premium of 42 per cent to pandemic-ravaged Sydney Airport’s last trading price before the offer.
In a statement, the airport rejected the deal, saying: “Sydney Airport is strongly positioned to deliver growth as vaccination rates increase and we move into the post-pandemic recovery period.
“Sydney Airport will only progress a change in control transaction on terms that deliver and recognise appropriate long term value.”
In response, the Sydney Aviation Alliance said it was “surprised and disappointed” by the rejection, but did not say if it had ruled out a higher offer.