Own Sydney Airport (ASX:SYD) shares? Here’s the latest development on the takeover bid

Man wheels trolley full of suitcases while woman sits on them with her hands in the air at an airport.

Those with Sydney Airport (ASX: SYD) shares in their portfolio might soon be jumping for joy.

The consortium looking to acquire the airport is reportedly preparing to put forward a formal offer over the next few days.

According to reporting by The Australian, the Sydney Aviation Alliance consortium plans to put down a binding $23.6 billion offer in the coming days. That would see the group paying $8.75 per share.

At the time of writing, the Sydney Airport share price is $8.37, 1.33% higher than its previous close.

Let’s take a closer look at the reportedly imminent offer.

A quick refresher

Sydney Airport has been faced with numerous takeover offers from the Sydney Aviation Alliance consortium over the last few months.

Though, the airport’s board only accepted the most recent, $8.75 per share bid, posted on 13 September. Now, the consortium is undertaking due diligence on the airport.

The consortium’s made up of IFM Investors, Global Infrastructure Management, AustralianSuper, and QSuper.

The Sydney Airport share price is currently 44% higher than it was before the consortium posed its first takeover offer.

Today’s news

According to The Australian, it understands the Sydney Aviation Alliance consortium will officially slap its $23.6 billion takeover offer on the table tomorrow or Monday.

The publication states that, following an official acceptance of the offer, the deal would have to be given the green light by the Foreign Investment Review Board and the Australian Competition and Consumer Commission.

The watchdogs might be looking very closely at Sydney Airport’s proposed ownership structure. Particularly, as some members of the consortium reportedly own significant stakes in other Australian airports.

Under Australian law, any one company is restricted from owning large chunks of more than one airport. The Australian states that forming a consortium is an attempt to avoid breaking such ownership rules.

Sydney Airport share price snapshot

The Sydney Airport share price has gained 30% since the start of 2021. It is also 37% higher than it was 12 months ago.

The post Own Sydney Airport (ASX:SYD) shares? Here’s the latest development on the takeover bid appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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