Sydney Airport board sticks to its guns, knocking back sweetened takeover offer

An airport signMore images here:

Sydney Airport’s board has turned down a revised proposal to acquire the ASX-listed company from a consortium of infrastructure investors.

The revised offer by the ‘Sydney Aviation Alliance’ contained a slightly higher price at which it wanted to purchase Sydney Airport’s stapled securities at $8.45 each, valuing the company at $22.8 billion – up from the original $22 billion valuation based on the initial bid (which was later rejected, of course).

The revised proposal also included AustralianSuper as a new member of the consortium.

However, the board of Sydney Airport is still unsatisfied with the price that the Sydney Aviation Alliance is willing to pay, saying the revised offer still undervalues the company.

“In coming to this conclusion, the current environment does not change the boards’ view of the long-term value,” it said in a statement to shareholders.

“The boards also note the rapid increase and acceleration in Australian vaccination rates in recent weeks and the governments’ plans to progressively ease restrictions as the population reaches vaccination targets, which will then see the re-opening of travel.

“Sydney Airport remains strongly positioned, has strengthened its balance sheet and tightly managed costs to maintain flexibility to respond to a range of recovery scenarios and to pursue sensible growth opportunities as the recovery unfolds.

“At the current indicative price of $8.45 per stapled security, the boards continue to view the revised indicative proposal as opportunistic in light of the COVID-19 pandemic.

“The boards are open to engaging with the Sydney Aviation Alliance should the consortium be prepared to lift its indicative price to appropriately recognise long-term value for Sydney Airport security holders.


Featured image source: iStock/Lighthousebay

Latest News

  • Appointments
  • Hotels

Kerzner International announce key leadership appointments

Kerzner International has announced two significant leadership appointments as part of a brand-new management structure designed to position the company for continued growth and success. Brand verticals Kerzner is renowned for creating pioneering brands from the larger-than-life Atlantis to the ultra-luxury One&Only Resorts, and recently an industry-first with the launch of SIRO, the ultimate fitness […]

  • Hotels

Sofitel Sydney Darling Harbour welcomes Santa Clause

Sofitel Sydney Darling Harbour has welcomed Santa Clause to bring early Christmas presents to the children of the Royal Far West Charity. Royal Far West is one of the charities supported by hotel owner, Dr. Jerry Schwartz, who organised for high-rise window cleaning entrepreneur Edvaldo Godoy of Updown Access to “sleigh” down the face of […]

  • Travel Agents

Digital marketer says travel operators are missing out on free cash

Travel operators are missing out on free cash for marketing, says Sam Patton, founder of The Social Spider, Australia’s first digital marketing agency dedicated to the travel sector. Some savvy travel companies are successful in accessing “magical” marketing funds from government and private sources but many were unaware of available cash or unwilling to spend the […]

  • Food & Beverage
  • Hotels

Banyan Tree offers special Christmas dining options

Banyan Tree has announced a host of 5-star gourmet Christmas and New Year dining experiences for each of its restaurants across the festive season. Here’s a selection: Banyan Tree Krabi Gala Dinner The Banyan Tree Krabi is hosting a sumptuous Christmas Eve Gala Dinner at its popular restaurant, The Naga Kitchen. Guests can enjoy an […]