"Sydney Airport Rejects 19 Trillion Won Cash Acquisition Proposal"

Photo by Reuters

[Asia Economy Reporter Yujin Cho] Bloomberg reported on the 15th (local time) that Sydney Airport rejected a $16.7 billion (approximately 19 trillion KRW) cash acquisition offer from an infrastructure investment consortium.

On the same day, Sydney Airport operator Sydney Airport Holdings stated, "The acquisition price was assessed to be lower than the actual value of Sydney Airport," and explained the reason for rejecting the offer by saying, "As vaccination rates increase, we are confident that once the COVID-19 situation is resolved and the economy reopens, strong growth can be achieved."

Earlier, an infrastructure investment consortium consisting of global asset manager IFM Investors, Australian pension fund QSuper, and global infrastructure firms proposed a cash acquisition of Sydney Airport Holdings at $8.25 per share.

This price reflected a premium of about 42% compared to the closing price on the day of the offer.

Due to the sharp decline in air travel demand caused by the COVID-19 pandemic, Sydney Airport's stock price has remained weak. The acquisition price is also lower than the level seen in January last year when it reached an all-time high.

Since March last year, Sydney Airport has experienced a sharp drop in passenger numbers due to the impact of COVID-19, and it is expected that normal operations will be difficult to resume until mid-next year.

This content was produced with the assistance of AI translation services.