After several rejected bids, the Sydney Airport accepted a takeover bid from investment group Sydney Aviation Alliance consortium at A$8.75 ($6) per share on Monday, which will equate to a deal of A$23.6 billion ($17 billion).
The bid marked the investment group’s third offer since its A$8.25 per share offer on July 5, and A$8.45 per share offer on August 16, both of which were knocked back on the terms of “not to be in the best interests of Sydney Airport security holders”, reports Xinhua news agency.
Over the next month Sydney Airport would open its books to the investors group allowing them to conduct due diligence before finalising the purchase.
The agreement remains non-exclusive and the airport would still be able to accept other bids.
On Monday, the Sydney Airport’s board declared its intent to “unanimously recommend that security holders vote in favour of the proposal in the absence of a superior proposal”.
In its August half year results Sydney Airport posted nearly A$100 million in losses and a 91 per cent decline of international passengers and 36.4 per cent dip in domestic passengers.
Despite this, CEO Geoff Culbert expected business to pick up as Australia’s vaccination rate increases and borders begin to reopen.