Sydney Airport (ASX: SYD) shares have skyrocketed this morning – taking the gains to over 33% at the time of writing this. SYD shares currently trade at $7.74 a share on the back of a takeover offer Sydney Airport has received.
If we can’t reach the sky by way of air travel, SYD shares sure can. This morning, Sydney Airport announced that they have received an unsolicited, indicative, conditional and non-binding proposal from a consortium of infrastructure investors to acquire, by way of scheme of arrangement and trust scheme, 100% of the stapled securities in Sydney Airport at an indicative price of $8.25 cash per stapled security. The acquisition bid comes from IFM Group, QSuper, and Global Infrastructure Management, LLC.
The proposal is subject to a number of conditions such as UniSuper, which holds approximately 15% of Sydney Airport’s total securities, agreeing that it would reinvest its equity interest in Sydney Airport for an equivalent equity interest in the Consortium’s holding vehicle, due diligence, and of course subject to approval from the Board at Sydney Airport.
SYD shares at the highs of over $8.5 prior to the pandemic. 2019 was a fantastic year for the travel industry and SYD shares performed remarkably well. However, since the pandemic, and the obvious impacts to air travel, SYD shares have been trading at an average of less than $6 a share for well over a year now. The takeover bid is largely in line with an emerging theme of acquisitions we have been seeing not just here in Australia, but globally. Lots of investors have been open to acquiring troubled companies at over the top prices relative to the average 1-year share price.
The offer takes the SYD share price to a 1-year high and given the offer for $8.25 a share, there is good reason to believe that SYD shares can continue to rise in trading.
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