After several rejected bids, Australia’s Sydney Airport accepted a takeover bid from investment group Sydney Aviation Alliance consortium at 8.75 Australian dollar (6.44 U.S. dollars) per share on Monday, which will equate to a deal of 23.6 billion Australian dollar (17.37 billion U.S. dollars).
The bid marked the investment group’s third offer since its 8.25 Australian dollar (6.07 U.S. dollars) per share offer on July 5, and 8.45 Australian dollar (6.22 U.S. dollars) per share offer on Aug. 16, both of which were knocked back on the terms of “not to be in the best interests of Sydney Airport security holders.”
Over the next month Sydney Airport would open its books to the investors group allowing them to conduct due diligence before finalizing the purchase.
The agreement remains non-exclusive and the airport would still be able to accept other bids.
On Monday Sydney Airport’s board declared its intent to “unanimously recommend that security holders vote in favour of the proposal in the absence of a superior proposal.”
In its August half year results Sydney Airport posted nearly 100 million Australian dollars (73.58 million U.S. dollars) in losses and a 91-percent decline of international passengers and 36.4-percent decline in domestic passengers.
Despite this, CEO Geoff Culbert expected business to pick up as Australia’s vaccination rate increases and borders begin to reopen
Fahad is an entrepreneur and a marketing enthusiast who loves to write on trending topics. He loves travelling & playing tennis is what he does in his leisure time. He tweets @fahad164.
Email:- fahad164@gmail.com , fahad@themediaparadigm.com
