Australia sells Sydney Airport for $17.4bnEuropost
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.