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

  • News

It’s not just skiing you have to worry about! Travel insurer warns Aussies about the perils of sports abroad

With a few major sporting events just around the corner, and the snow season in the southern hemisphere approaching, Aussies might be feeling inspired to get outside and unleash their inner athlete. However, Southern Cross Travel Insurance (SCTI) is urging holidaymakers to ensure they have adequate travel insurance coverage if they’re planning on taking part […]

  • Destinations
  • Hotels

Delamore Lodge unveils newly refurbished accommodation

Delamore Lodge, Waiheke Island’s exclusive boutique luxury hideaway, has unveiled the newly refurbished Ataahua Owners Villa. While Ataahua means “beautiful”, the owners villa is a two-bedroom, two-bathroom apartment that offers complete privacy and self-contained luxury. The master bedrooms have sweeping views of the Hauraki Gulf waters, spacious super-king beds, ensuites with rainforest showers, and generous […]

  • Food & Beverage
  • Hotels

Hilton Honors extends its dine Like a Member promotion

Hilton Honors has extended its dine “Like a Member” promotion, allowing guests to get up to 25 per cent off on participating outlets in hotels and resorts within their portfolio. The offer is in effect until 31 December 2024 in all Hilton properties, excluding those in the Maldives, French Polynesia and outlets within Hampton hotels […]

  • Events
  • Tour Operators

ITE HCMC 2024 focuses on sustainable tourism for creating a future

The 18th annual International Travel Expo Ho Chi Minh City (ITE HCMC) will take place from 5 to 7 September at the Saigon Exhibition and Convention Center. Under the theme “Responsible Travel, Creating Future”, the expo will highlight its dedication to promoting sustainable tourism practices and showcasing innovative tourism products and services to meet rigorous […]

  • Appointments

Seasoned pro Chris Waite goes out on his own in corporate affairs & communications

Seasoned tourism and hospitality industry corporate affairs and communications professional Chris Waite has unveiled his new consultancy. Drawing on his 25 years of experience across Australia, Europe, and Asia, Chris Waite Corporate Affairs & Communications is dedicated to helping businesses build and safeguard their most valuable asset: their reputation. Waite will focus on delivering results through […]

  • News

Travel becomes the leading retirement priority in latest Equip Super research

A staggering 71 per cent of Australians are prioritising spending their retirement savings on travel, according to a recent survey by leading superannuation fund, Equip Super. Health concerns were ranked as second as the most significant priority in retirement with 56 per cent and spending on hobbies and interests takes the third spot at 54 […]

  • Aviation
  • Technology

SITA wins Heathrow Airport’s confidence with contract extension for network infrastructure solutions

Global leader in air transport technology, SITA, signed a five-year extension with Heathrow Airport to support its vast and growing network infrastructure. The agreement sees SITA providing a wide range of network, telecommunications, and connectivity services, while introducing innovative new solutions to business operating within Heathrow. SITA has built a strong relationship with Heathrow since […]