Investors may want to know how the Sydney Airport (ASX: SYD) share price performed in October 2021.
The business continues to be impacted by COVID-19 effects. But that’s probably not the main thing that is influencing the Sydney Airport share price.
Sydney Airport share price performance
Over October 2021, the Sydney Airport share price dropped around 0.6%.
Sydney Airport is currently dealing with a consortium of investors that want to buy the Sydney Airport business outright. This consortium, called the Sydney Aviation Alliance, wants to buy the whole business for an indicative price of $8.75 cash per share.
The airport business did grant the consortium the opportunity to conduct due diligence over a four-week period. That concluded in the middle of October 2021. A couple of weeks ago, Sydney Airport said that its boards continue to negotiate the relevant transaction documents with the parties seeking their respective internal approvals over the coming weeks.
If those documents are agreed, the Sydney Airport boards intend to unanimously recommend that investors vote in favour of the proposal if a better offer doesn’t appear and an independent expert concluding that the transaction is in the best interest of securityholders.
While relevant transaction documents remain under negotiation, the Sydney Airport boards note that there is no guarantee that an agreement will be reached.
Over the last five months, the Sydney Airport share price has gone up by around 35%.
Before the takeover approach, one of the main influencers on the Sydney Airport share price was its regular passenger update.
Total passenger traffic in September 2021 was 42,000 passengers, down 98.8% compared to the same month in 2019. Domestic passengers totalled 23,000 in September 2021, which was down 99% on 2019. There were only 19,000 international passengers that passed through Sydney Airport in September 2021, down 98.6% on 2019.
Sydney Airport noted international and domestic passenger traffic in September continued to be impacted by NSW stay at home orders and ongoing border restrictions.
Looking at the top six nationalities that had travelled through Sydney Airport in 2021 to date, they were these countries in order: Australia, China (including Hong Kong), India, the USA, the UK and New Zealand,
Is the Sydney Airport share price a buy?
The broker Ord Minnett thinks that Sydney Airport shares are a hold, with the price target of $8.75 being the takeover offer price. That means there is a potential upside of around 5%, if the deal goes ahead.
The post Own Sydney Airport (ASX:SYD) shares? Here’s how the share price performed in October appeared first on The Motley Fool Australia.
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