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Date : 11/11/2021

Sydney Airport Stock On Close Watch After Takeover Bid

The Sydney airport stock price or Sydney Airport share price has been trading sideways recently. SYD has been the subject of several acquisition announcements in the past few months. On the 8th of November, SYD announced that they have entered into a Scheme Implementation Deed with Sydney Aviation Alliance. Know more on Sydney Airport Stock from our experts.

Why is Sydney Airport Stock Price Rising?

Under the agreement, SAA has agreed to acquire 100% of the shares in SAL by way of scheme of arrangement and 100% of the units in SAT1 by way of trust scheme. SAA is an entity controlled by the Sydney Aviation Alliance. It comprises various investment and infrastructure funds affiliated or managed by IFM Australian Infrastructure Fund, IFM Global Infrastructure Fund, AustralianSuper, QSuper and Global Infrastructure Partners. This group is known as the Consortium.

As per the agreement, Sydney Airport Securityholders will receive $8.75 cash per stapled security. UniSuper Limited will transfer its existing interest of 15.01% in Sydney Airport. The Scheme Consideration values Sydney Airport’s equity at approximately $23.6 billion. The offer represents an uplift in equity value of approximately $1.3 billion to the price of $8.25 initially offered by the Consortium in July 2021.

This offer also represents a $7.9 billion uplift to the closing price on the business day prior to Sydney Airport’s announcement.

The Sydney Airport Boards unanimously recommended that Sydney Airport Securityholders vote in favour. The Scheme meetings will be held in the first quarter of 2022.

Following a lengthy M&A battle, it looks like a deal has finally been struck for SYD.

The Schemes are subject to various conditions. A copy of the SID, which sets out the terms and conditions of the Schemes and associated matters, is attached to this announcement. Capitalised  terms used in this section below have the meaning given to those terms in the SID. In summary, conditions for implementation of the Schemes include:

  • the Independent Expert issues an Independent Expert’s Report which concludes that the Schemes are in the best interests of the Sydney Airport Securityholders (other than UniSuper)
  • approval of the Australian Competition and Consumer Commission (“ACCC“);
  • approval of Australia’s Foreign Investment Review Board (“FIRB“);
  • the Consortium obtaining European Union merger clearance;
  • approval of Sydney Airport Securityholders and the Supreme Court of New South Wales;
  • no Sydney Airport Prescribed Occurrence, Sydney Airport Material Adverse Change or Sydney Airport Regulated Event occurring; and
  • other customary conditions.

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