News: SYD Sydney Airport signs $17.5 bln buyout deal, continues to recommend offer

Nov 8 (Reuters) - Sydney Airport Holdings (SYD) entered a scheme implementation deed for an infrastructure group to buy the airport operator for A$23.6 billion ($17.46 billion), it said on Monday, making it one of the biggest buyouts ever in Australia.

Sydney Airport's board said in a statement https://assets.ctfassets.net/v228i5y5k0x4/4E8IujXbovh6jYvB3lFrpF/54f59055011803b98b85aaaf5150644e/SYD_enters_into_Scheme_Implementation_Deed.pdf that it unanimously recommended the buyout offer from Sydney Aviation Alliance (SAA), and would hold a scheme meeting in the first quarter of 2022.

"The Sydney Airport Boards believe the outcome reflects appropriate long-term value for the airport, and unanimously recommend the proposal to securityholders," Chairman David Gonski said.

The deal is conditional on an independent expert's report, approval from 75% of the airport operator's shareholders, as well as a green light from the competition regulator and the Foreign Investment Review Board, a process that could take months to complete.

The deed also makes a provision of reimbursement fees of A$150 million, in case it is terminated by any of the parties.

In September, the sale of Australia's biggest airport operator https://www.reuters.com/world/asia-pacific/sydney-airport-board-grant-due-diligence-after-improved-174-bln-offer-2021-09-12 moved closer after the bidding consortium, SAA, won permission to conduct due diligence after sweetening its takeover offer to A$23.6 billion.

SAA is comprised of Australian investors IFM Investors, QSuper and AustralianSuper and U.S.-based Global Infrastructure Partners.

($1 = 1.3517 Australian dollars) (([email protected]; Twitter: https://twitter.com/sameer_manekar;))