Sydney Airport receives revised conditional and non-binding proposal and concludes that it is not in the best interests of Securityholders

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  1. 78.6k
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    Sydney Airport today announces that it has received a revised indicative, conditional and
    non-binding proposal from the Sydney Aviation Alliance (the “Consortium”) that provides
    for an acquisition, by way of scheme of arrangement and trust scheme, of 100% of the
    stapled securities in Sydney Airport at an indicative price of A$8.45 cash per stapled
    security1,2
    (“Revised Indicative Proposal”).
    The terms and conditions of the Revised Indicative Proposal are otherwise consistent with
    the original indicative proposal received from the Consortium on 5 July 2021, which had an
    indicative price of A$8.25 per stapled security, which was unanimously rejected by the
    Boards of Sydney Airport (the “Boards”) on 15 July 2021. The Revised Indicative Proposal
    advises that AustralianSuper Pty Ltd, as trustee of AustralianSuper, has joined the
    Consortium.
    The Boards have carefully considered the Revised Indicative Proposal, including obtaining
    advice from their financial and legal advisers.
    The Boards have unanimously concluded that the Revised Indicative Proposal continues to
    undervalue Sydney Airport and is not in the best interests of Securityholders.
    In coming to this conclusion, the current environment does not change the Boards’ view of
    the long term value. The Boards also note the rapid increase and acceleration in Australian
    vaccination rates in recent weeks and the governments’ plans to progressively ease
    restrictions as the population reaches vaccination targets which will then see the re-opening
    of travel.
    Sydney Airport remains strongly positioned, has strengthened its balance sheet and tightly
    managed costs to maintain flexibility to respond to a range of recovery scenarios and to
    pursue sensible growth opportunities as the recovery unfolds. At the current indicative price
    of A$8.45 per stapled security, the Boards continue to view the Revised Indicative Proposal
    as opportunistic in light of the COVID-19 pandemic.
    1 Consistent with the Indicative Proposal announced on 5 July 2021, if the transaction were to proceed it is proposed that
    UniSuper would receive an equivalent equity interest in the Consortium’s holding vehicle rather than cash consideration.
    2 The indicative price would be reduced by the value of any distributions declared or paid by Sydney Airport prior to the
    schemes taking effect.
    − 2 −
    Additionally, as outlined in Sydney Airport’s previous announcement, there are a number of
    factors that the Boards have taken into account, including:
    • The strategic and irreplaceable nature of Sydney Airport which is a world class airport
    and one of Australia’s most important infrastructure assets. Sydney Airport is
    Australia’s largest airport and is the gateway to international travel in and out of
    Australia
    • Sydney Airport is a well managed and capitalised asset
    • Sydney Airport’s consistent delivery of value to Securityholders with a total
    shareholder return of 19% (annualised) from FY15-19 and total passenger growth of
    2.9% (CAGR) over the same period
    • The diversity of Sydney Airport’s earnings, with the core aeronautical business
    supported by a high yield retail offering as well as property, car parking and ground
    transport revenues
    • The significant value of Sydney Airport’s land assets and potential to create
    additional value through further development of on-airport commercial property
    opportunities
    The Boards are open to engaging with the Sydney Aviation Alliance should the Consortium
    be prepared to lift its indicative price to appropriately recognise long term value for Sydney
    Airport Securityholders.

    courtesy of Bell Direct
    =========================================================================================

    DYOR

    i no longer hold SYD

    i was looking for a $6.40 exit , that offer popped up so i took the $8 at open that day , and went YIPPEE , YIPPEE , YIPPEE all the way to the bank

  2. 78.6k
    Posts

    Sydney Airport – Consortium Proposal Update
    Sydney Airport refers to its announcement of 13 September 2021 which noted the receipt
    of a revised indicative, conditional and non-binding proposal from the Sydney Aviation
    Alliance (the “Consortium”) to acquire 100% of the stapled securities in Sydney Airport at
    an indicative price of A$8.75 cash per stapled security (the “Proposal”)
    1,2
    . The
    announcement also noted Sydney Airport's agreement to grant the Consortium the
    opportunity to conduct due diligence on a non-exclusive basis over a four-week period
    following entry into a Non-Disclosure Agreement.
    In conformity with the timetable, the four-week due diligence period has now concluded.
    The Sydney Airport Boards continue to negotiate the relevant transaction documents with
    a view to the parties seeking their respective internal approvals over the coming weeks.
    Should these documents be agreed, it remains the Sydney Airport Boards’ intention to
    unanimously recommend that securityholders vote in favour of the Proposal, in the
    absence of a superior proposal and subject to an independent expert concluding that the
    proposed transaction is in the best interests of Sydney Airport securityholders. While
    relevant transaction documents remain under negotiation, the Sydney Airport Boards note
    that there is no guarantee that an agreement will be reached on these documents. Sydney
    Airport will update the market as required.
    Sydney Airport securityholders do not need to take any action in response to the
    Consortium's proposal at this stage.
    Authorised for release by the SAL and TTCSAL Boards

    courtesy of Bell Direct
    =========================================================================================

    DYOR

    i no longer hold SYD

    i was looking for a $6.40 exit , that offer popped up so i took the $8 at open that day , and went YIPPEE , YIPPEE , YIPPEE all the way to the bank

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