A group of infrastructure investors has proposed one of Australia’s biggest-ever buyouts
Investors are seeing the future of travel and have proposed an AUD $22.26 billion purchase of Sydney Airport.
The proposal comes as record-low interest rates prompt pension funds and their investment managers to chase higher yields.
The purchase, with an enterprise value of $30 billion includes the airport’s debt but would allow investors to reap financial benefits when borders reopen and travel demand takes an expected rebound.
If successful, the purchase of Australia’s biggest airport would be one of the country’s largest-ever by enterprise value in U.S. dollar terms.
It would also rank as the eighth-biggest deal globally this year
If all goes to plan, it will become the second-largest airport purchase, behind the $30.2 billion 2006 buyout of Britain’s Heathrow Airport.
Sydney Airport has confirmed they are still in the process of reviewing the proposal.
The airport operator’s share price hit a record A$8.86 in January last year, before the COVID-19 pandemic struck and caused devastation to the travel sector.
