BlackRock has emerged as one of Sydney Airport’s biggest institutional shareholders, with a stake of 5.02% valued at more than A$1bn (€624.5m).

The US giant’s subsidiaries around the world had been acquiring securities in the A$22.23bn listed airport, since June, before a consortium led by IFM Investors, known as the Sydney Aviation Alliance, made a play for what is Australia’s largest airport.

The Sydney Aviation Alliance made its initial approach at a bid of A$8.25 cash per share on 5 July.

Over the period from 8 June, BlackRock has paid from a low of A$5.75 per share in June up to A$8.30 per share in September. In total, it has acquired more than 135.5m shares.

BlackRock notified the Australian Securities Exchange that its cumulative holding in Sydney Airport has tipped over the substantial shareholder level of 5%.

It will now be the fourth single largest shareholder in the company, the nominees registered through HBSC Custody, BNP Paribas and JP Morgan.

Currently, Sydney Airport’s single largest shareholder is the industry superannuation fund UniSuper, which owns 15%.

Sydney Aviation Alliance made an initial bid of A$22bn for Sydney Airport in July. By September, it had revised its offer to A$23.6bn, valuing the airport at A$32bn. The consortium has been granted access by Sydney Airport to undertake due diligence.

The takeover will require the support of all substantial shareholders as well as competition and regulatory approvals.

The other consortium members are the US infrastructure firm, Global Infrastructure Partners and two Australian domestic superannuation funds, AustralianSuper and QSuper.

To read the digital edition of the latest IPE Real Assets magazine click here.