Sydney Airport share price: where next following $22.3bn takeover bid?

The airport’s stock surged after the company announced it had received a takeover offer from a consortium of investors.

The Sydney Airport share price opened 37% higher on Monday after the company announced it had received a non-binding takeover proposal.

A long list of qualifiers would follow, with the company noting that the takeover offer was unsolicited, indicative, conditional and non-binding. The takeover offer is for $8.25 per share, a significant premium to where the stock traded last Friday.

That offer price values the iconic Australian airport at approximately $22.3 billion.

The takeover offer was made by a consortium of infrastructure investors, including: IFM Investors, Conyers Trust Company, QSuper Board and Global Infrastructure Management.

Sydney Airport management has appointed Barrenjoey and UBS as financial advisers on the deal, and Allens as its legal advisor.

While no timeline was specified, the company noted that its Board has commenced assessing the merits of the takeover offer.

Is the offer opportunistic?

While the market responded with understandable enthusiasm to the takeover offer, Sydney’s management team appeared to strike a more sceptical tone.

The Board made the point to stress that Sydney Airport is a 'world class airport and one of Australia's most important infrastructure assets.' This was followed up by noting that the offer price of $8.25 per share sits below where the stock was trading at before the pandemic.

As such, it was noted that 'The Boards are undertaking detailed analysis of, amongst other things, whether the proposal is reflective of the underlying value of the airport given its long-term remaining concession and the expected short-term impact of the pandemic.’

Indeed, speaking to the impact of the pandemic, across May the company said it had witnessed a 93% decline (on a PCP basis) in international passenger traffic. Domestic passenger traffic was down a less pronounced 39.2%.

There is no certainty, the company noted, that this takeover proposal will result in a transaction.

By noon the stock had drifted from its open price, trading around the $7.50 per share mark, still up it should be noted, 29% for the session.

Over the last year the stock is up 38%.

Do you have a view on Sydney Airport? Whatever you think, you can use CFDs to trade stocks and other assets, through IG’s world-class trading platform.

For example, to buy (long) or sell (short) Sydney Airport today using CFDs, follow these easy steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter ‘SYD’ in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

Conditions that need to be met: where next

With the offer being conditional, management outlined a number of conditions that would have to be met for the transaction to proceed.

Chief among these was noting that it would require UniSuper, which currently holds a 15% stake in the airport, to agree to reinvest its stake in Sydney Airport, for what was described as 'an equivalent equity interest in the Consortium’s holding vehicle.'

Beyond that, approval from Sydney's shareholders, the courts, and regulators; among a number of other requirements, were also flagged.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.