The board of Sydney Airport on Thursday rejected an AUD 8.25 (USD 6.16) per share takeover offer as it “undervalues” the operator of Australia’s largest airport.
The bid, by a consortium of infrastructure investors that valued Sydney Airport at AUD 22 billion, was deemed “opportunistic” given the significant impact COVID19 has on travel.
Sydney is currently in an extended lockdown given an outbreak of COVID19 in the city.
But there is no doubting an eventual travel recovery.
The board said Sydney Airport will consider an offer that recognises its significant long-term growth prospects, post-pandemic, to leave the door open for improved bids.
Sydney Airport was trading at AUD 7.81 each following the rejection but much higher than the AUD 5.81 per share prior to the bid.
Australian companies have been a target of takeover offers given the ultra-low interest rate and financial fallout from the pandemic.
Most have said no. But that hasn’t stopped the bidding and investors can expect more.
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