Sydney Airport’s board has rejected an offer for the ASX-listed company to be acquired, labelling it “opportunistic” and saying the bid “undervalues” its true worth.
Sydney Airport shareholders were made aware of the offer by a consortium of infrastructure investors last week, which was hoping to purchase 100 per cent of stapled securities in the company at an indicative price of $8.25 each, equating to a valuation of more than $22 billion.
The consortium comprises IFM Investors as trustee for IFM Australian Infrastructure Fund, Conyers Trust Company as trustee for IFM Global Infrastructure Fund, QSuper Board as trustee for QSuper, and Global Infrastructure Management LLC.
However, after mulling over the bid, the Sydney Airport board concluded that it “undervalues” the company and “is not in the best interests of security holders”.
The board noted that the timing of the offer was “opportunistic” given the significant impact of the COVID-19 pandemic on Sydney Airport’s performance, and that the indicative price is below where the airport’s security price traded before the pandemic.
“The boards recognise that the security price is likely to trade below the consortium proposal’s indicative price in the short term,” Sydney Airport said in a statement.
“However, Sydney Airport will only progress a change in control transaction on terms that deliver and recognise appropriate long-term value for Sydney Airport security holders.”
Featured image source: Sydney Airport/Belinda Rolland © 2019