A consortium led by IFM Investors – including QSuper, Global Infrastructure Partners (GIP) – has made a A$22.3bn (€14.1bn) offer to buy Sydney Airport.
The Sydney Aviation Alliance consortium, which includes and the IFM Global Infrastructure Fund, is proposing to pay A$8.25 for each Sydney Airport stapled security, representing a 23% premium to the airport’s closing price on 1 July. The offer implies an equity value for Australia’s largest airport of A$22.3bn and an enterprise value of A$29.8bn.
Confirming the proposal, Sydney Airport said the “indicative proposal has been made during a global pandemic which has deeply affected the aviation industry and the Sydney Airport security price”.
The indicative price is below where Sydney Airport’s security price traded before the pandemic,” Sydney Airport said.
The airport’s share price traded at above A$9 each in December 2019 and dropped below A$5 last year.
“The boards are undertaking detailed analysis of, among other things, whether the proposal is reflective of the underlying value of the airport given its long-term remaining concession and the expected short-term impact of the pandemic.”
The Sydney Aviation Alliance said its proposal was subject to certain conditions, including Sydney Airport’s largest securityholder, UniSuper, agreeing to reinvest its holding into an equivalent unlisted and illiquid interest in the privatised Sydney Airport.
UniSuper holds a 15% stake in the airport.
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