Australia’s Sydney Airport receives $16.7bn takeover offer

posted on 7th July 2021 by Eddie Saunders
Australia's Sydney Airport receives $16.7bn takeover offer

By Papa Kuranchie | cityam.com

A consortium of IFM investors, pension fund QSuper and Global Infrastructure Management has made an offer of AU$22.26b (£12.1b) for Sydney Airport.

However, the AU$8.25 per share offer sits below the record AU$8.86 high that the airport’s stock hit in January of last year. The owner of the international aviation hub said it is reviewing the offer.

Since the bid was tabled, Sydney Airport’s shares have jumped by 30 per cent.

The offer came less than a week after Australia announced that it would halve its number of international arrivals. New Covid outbreaks have put half the population in lockdown this week.

This mean that only Austrailians and people with exemptions can enter the country and, from 14 July, Australia will only accept just over 3,000 people a week. The rules are likely to remain in place until early next year.

According to Sydney Airport, its international traffic was 93 per cent lower in May than it was this time last year. In the same period, domestic travel was down by 39.2 per cent.