Sydney Airport confirmed on Monday it has entered into a scheme implementation deed with the Sydney Aviation Alliance (SAA), led by IFM Investors at $8.75 a share.
The bid prices Sydney Airport at some $23.6 billion and represents an uplift in equity value of $1.3 billion to the price of $8.25 initially offered by the consortium in July 2021.
As part of the deal, UniSuper has agreed to transfer its existing interest of 15.01 per cent in Sydney Airport for an equivalent interest in the holding structure of the consortium.
Sydney Airport rejected SAA’s July bid at $8.25 a share before receiving a further two – $8.45 in August and eventually $8.75 in September.
Following the completion of the four-week due diligence, the board has now unanimously recommended that Sydney Airport securityholders vote in favour of the schemes, in the absence of a superior proposal.
The scheme meetings are expected to be held in the first quarter of 2022.
Sydney Airport is not the first airport that the SAA consortium has approached, having invested more than $3.8 billion in capital programs over the last five years, including the construction of a second runway at Brisbane Airport and improvements to terminals at Melbourne Airport.
The Australian Competition and Consumer Commission earlier announced it was closely examining the deal, given the consortium’s involvement with other local airports.
“The ACCC is aware of the proposal to acquire Sydney Airport and understand that any acquisition will be subject to ACCC clearance,” an ACCC spokesperson said in July.
“We will consider the acquisition once we receive a submission and will take a very close look at all relevant competition issues.”
