SYDNEY, Sept 13 (NNN-AGENCIES) – After several rejected bids, Australia’s Sydney Airport accepted a takeover bid from investment group, Sydney Aviation Alliance consortium, at 8.75 Australian dollars (6.44 U.S. dollars) per share today, which will equate to a deal of 23.6 billion Australian dollars (17.37 billion U.S. dollars).
The bid marked the investment group’s third offer, since its 8.25 Australian dollars (6.07 U.S. dollars) per share offer on July 5, and 8.45 Australian dollars (6.22 U.S. dollars) per share offer on Aug 16, both of which were knocked back on the terms of “not to be in the best interests of Sydney Airport security holders.”
Over the next month Sydney Airport would open its books to the investors group, allowing them to conduct due diligence before finalising the purchase. The agreement remains non-exclusive and the airport would still be able to accept other bids.
Today, Sydney Airport’s board declared its intent to “unanimously recommend that security holders vote in favour of the proposal, in the absence of a superior proposal.”
In its Aug half-year results, Sydney Airport posted nearly 100 million Australian dollars (73.58 million U.S. dollars) in losses, and a 91-percent decline of international passengers, and 36.4-percent decline in domestic passengers.
Despite this, CEO Geoff Culbert, expected business to pick up, as Australia’s vaccination rate increases and borders begin to reopen.– NNN-AGENCIES
