Australia sells Sydney Airport for $17.4bn

Photo: AP

Australia holds talks with strategic investors in a bid to sell its biggest airport. The expected value of the transaction for the Sydney Airport is some 17.4 billion dollars, Reuters reported. The buyer is an infrastructure investor group which won permission to conduct due diligence after depositing weetening its takeover offer.

The move boosted the airport's shares by 5%, with analysts saying a rival bid appeared to be unlikely given the scale of the funding needed and foreign ownership rules that mean the airport must remain 51% Australian owned. Sydney Airport is Australia's only listed airport operator and a purchase would be a long-term bet on the travel sector which has been battered by the pandemic. The country plans to gradually open its borders once 80% of adults are fully vaccinated, a milestone expected by the end of the year.

A successful takeover would be among the largest buyouts ever of an Australian firm and underline a year of stellar deal activity, that has already seen a mega $29 billion buyout of Afterpay.Record-low interest rates have prompted pension funds and their investment managers to chase higher yields. Australia's other major airports are unlisted and owned by pension funds and infrastructure investors.

Similar articles

  • Ireland’s Ryanair aims to hire 5,000 new staff

    Ireland’s Ryanair aims to hire 5,000 new staff

    Irish airline Ryanair said on Thursday that it’s planning to create 5,000 jobs over the next five years as part of its recovery from the shock of the coronavirus pandemic, AP reported. The additional pilots, cabin crew and engineers will mean that the company will have more than recouped the 3,000 jobs it got rid of at the start of the pandemic last year. CEO Michael O’Leary said the carrier has been snapping up slots that have been vacated by airlines that have either collapsed or retrenched over the past 18 months or so.

    44
  • US passes $10bn high speed rails bill

    US passes $10bn high speed rails bill

    US House of Representatives will vote next week on new legislation that envisages some $10 billion in government help for high-speed-rail corridors. The House Transportation and Infrastructure proposal also includes another 10 billion dollars to support mobility for low-income Americans, including establishing new transit routes and funding for a fare-free service. The money is expected to be part of a $3.5 trillion government spending bill, Reuters reported.

    59
  • Masks will be mandatory on US flights until 18 January

    Masks will be mandatory on US flights until 18 January

    US extended the rule to ware mandatory masks on flights to 18 January 2022. The federal rule is also valid for other public transportation, AP reported. The Transportation Security Administration noted that the extension of restrictions is aimed to curb the spread of Covid-19. The same order which is currently valid was scheduled to expire 13 September 2021, an agency spokesman said.

    89