IFM Investors, after the made an initial offer of $8.25 a share and a revised bid of $8.45, both of which were rebuffed by Sydney Airport’s board. Accordingly, the Melbourne-based investment management company, represented by Chairman Greg Combet, decided to revise its offer for the second time, at about $8.75 a share, suggesting a valuation of more than $32 billion including debt.
The new bid attracted a positive response from Sydney Airport, with its board granting IFM Investors and its bid partners due diligence, conveying a strong signal that the airport’s directorate may be willing to recommend shareholders accept the offer. If everything goes according to plan, the parties could enter into a binding deal as early as next months, paving the way for IFM Investors to formally take control of the company early next year.
The mere fact that the airport is nearly dormant at the moment does not mean it is not valuable, with its board expecting the airport to be up and running as usual over the coming two years. Sydney Airport Holdings, the airport’s owner, is being advised by Barrenjoey, UBS and Allens, while Goldman Sachs, Macquarie Capital and Herbert Smith Freehills are working for IFM’s Sydney Aviation Alliance.
