The Supreme Court of NSW has made orders approving Sydney Aviation Alliance’s $23.6 billion acquisition of Sydney Airport.
In a statement to the ASX on Wednesday, Sydney Airport said it expected to lodge a copy of the court orders with the Australian Securities and Investment Commission to make the company scheme of arrangement legally effective.
“If this occurs, Sydney Airport will apply for its securities to be suspended from trading on the Australian Securities Exchange with effect from the close of trade today,” Sydney Airport said.
The Sydney Aviation Alliance, led by IFM and composed of Australian Super, QSuper and Global Infrastructure Partners, submitted its $23.6 billion cash offer in September after an earlier offer of $8.25 per share was rejected.
At a shareholders meeting last week, more than 96 per cent of votes and 79 per cent of shareholders were in favour of the proposed takeover.
The directors of Sydney Airport unanimously recommended that shareholders vote in favour after considering both the fundamental long-term value of the airport as well as the shorter-term challenges that have arisen during the pandemic.
“The board did take into account the long-term nature of the airport concession; the strategic nature of the airport as a world-class airport and one of Australia’s most important infrastructure assets, and the historical growth in the years prior to the COVID-19 pandemic,” said Sydney Airport chairman David Gonski.
“However, after careful consideration of those factors, the Sydney Airport board took the view that the cash consideration of $8.75 per security does fairly reflect the fundamental long-term value of the airport.”
S&P Dow Jones Indices has indicated that Sydney Airport will be removed from the S&P/ASX 200 and will be replaced by Telix Pharmaceuticals prior to the open of trading on Thursday.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.