Sydney Airport (ASX: SYD) intends to grant due diligence to a consortium of buyers looking to take over the company after receiving a third offer from the Sydney Aviation Alliance worth $23.6 billion.
At $8.75 per share, this latest offer from the consortium is up from the initial proposal of $8.25 in July and a revised bid of $8.45 in August - both of which were determined to not be in the best interests of shareholders by the company’s boards.
However, this latest proposal from the consortium which includes AustralianSuper, IFM Investors, QSuper and Global Infrastructure Management seems to have piqued Sydney Airport’s interest, with the boards recommending shareholders vote in favour of the takeover should a formal bid be placed.
“Having taken advice, and considering all the relevant factors, Sydney Airport intends to grant the Consortium the opportunity to conduct due diligence on a non-exclusive basis to enable it to put forward a binding proposal, subject to entry into a Non-Disclosure Agreement on acceptable terms,” Sydney Airport said.
“Should the Consortium make a binding offer at $8.75 cash per stapled security then, subject to the parties entering into a binding scheme implementation agreement on terms acceptable to Sydney Airport…the current intention of the Boards is to unanimously recommend that securityholders vote in favour of the proposal in the absence of a superior proposal.”
The airline noted there is no certainty that the revised proposal, or provision of access to the consortium to conduct due diligence, will result in a binding offer for the company.
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