Sydney Airport (ASX:SYD) is set to land on takeover deal

Sydney Airport (ASX:SYD) has agreed to a takeover offer from Sydney Aviation Alliance (SSA) following weeks of negotiations and due diligence.

The national airline has entered into a scheme implementation deed with SSA, a consortium made up of IFM Investors, Australian Super and QSuper. 

The bid values Sydney Airport’s equity at approximately $23.6 billion and represents an uplift in equity value of approximately $1.3 billion to the price of $8.25 initially offered by the consortium in July this year. 

As part of the deal, UniSuper will transfer its existing 15.01 per cent interest in Sydney Airport for an equivalent interest in the holding structure of the consortium.

The consortium first made a bid for Sydney Airport in July which valued the airport at $8.25 per share. In mid-August the consortium revised its offer to $8.45 per share, then to $8.75 in mid-September.

Following competition of a four-week non exclusive due diligence period, Sydney Airport shareholders, other than UniSuper, will receive $8.75 per share.

The Sydney Airport board unanimously recommend that securityholders vote in favour of the scheme. Scheme meetings are expected to be held in the first quarter of 2022.

“Today’s announcement is the culmination of months of engagement between all parties. The Sydney Airport Boards believe the outcome reflects appropriate long-term value for the airport, and unanimously recommend the proposal to securityholders, subject to customary conditions such as independent expert approval and no superior proposal,” said Sydney Airport chairman David Gonski.

Shares in Sydney Airport (ASX:SYD) are trading 2.43 per cent higher at $8.43.