Sydney Airport gets $16.7b buyout bid as investors take longer-term view on travel

A group of infrastructure investors has proposed a A$22.26b ($16.7b) buyout of Sydney Airport Holdings, the operator of Australia's biggest airport, taking a longer-term view on the pandemic-battered travel sector. Record-low interest rates have led pension funds and their investment managers to chase higher yields. The purchase, with an enterprise value of A$30 billion including debt, would allow them to reap financial benefits when borders reopen and travel demand rebounds. If successful, the deal would be Australia's biggest this year, eclipsing the $8.1b spin-off of Endeavour Group and Star Entertainment Group's $7.3b bid for Crown Resorts. The Sydney Aviation Alliance - a consortium comprising IFM Investors, QSuper and Global Infrastructure Partners - has offered A$8.25 per Sydney Airport share, a 42% premium to the stock's Friday close. Sydney Airport noted the offer was below its pre-pandemic share price and said it would review the proposal, which is contingent on granting due diligence and recommending it to shareholders in the absence of a superior offer. The company is Australia's only listed airport operator. A successful deal would bring its ownership in line with the country's other major airports which are owned by consortia of infrastructure investors, primarily pension funds.<br/>