Insights

Sydney Airport (ASX:SYD) share price on watch after new takeover approach

A new takeover offer has been made for Sydney Airport…
The post Sydney Airport (ASX:SYD) share price on watch after new takeover approach appeared first on The Motley Fool Australia. –

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price will be one to watch on Monday.

This follows the release of an update on its takeover approach this morning.

Why is the Sydney Airport share price on watch?

The Sydney Airport share price could be heading higher today after it announced the receipt of a revised indicative, conditional and non-binding proposal from the Sydney Aviation Alliance.

According to the release, the Sydney Aviation Alliance has proposed to acquire the airport operator by way of scheme of arrangement and trust scheme at an indicative price of $8.75 cash per stapled security.

This represents a 9.4% premium to the Sydney Airport share price at Friday’s close. It is also an increase on Sydney Aviation Alliance’s previous offers of $8.25 cash per share on 5 July and $8.45 cash per share on 16 August.

However, unlike the previous offers which were determined not to be in the best interests of Sydney Airport securityholders, the Sydney Airport Board is open to this proposal.

What was the response?

The release explains that after taking advice and considering all relevant factors, the Sydney Airport Board intends to grant the Sydney Aviation Alliance the opportunity to conduct due diligence on a non-exclusive basis.

This is to enable it to put forward a binding proposal, subject to entry into a non-disclosure agreement on acceptable terms. That due diligence is expected to take four weeks from entry into the non-disclosure agreement.

Should all go to plan and the Sydney Aviation Alliance makes its $8.75 cash per share offer binding and on acceptable terms, the current intention of the Sydney Airport Board is to unanimously recommend that securityholders vote in favour of the proposal.

This will be in the absence of a superior proposal. It also remains subject to an independent expert concluding that the proposed transaction is in the best interests of Sydney Airport securityholders.

However, the company has warned that there is no certainty that a binding offer will be made. As a result, Sydney Airport securityholders do not need to take any action in response to this proposal.

The post Sydney Airport (ASX:SYD) share price on watch after new takeover approach appeared first on The Motley Fool Australia.

Should you invest $1,000 in Sydney Airport right now?

Before you consider Sydney Airport, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Sydney Airport wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

How have ASX travel shares performed during the August 2021 earnings season?

Why is the Sydney Airport (ASX:SYD) share price in focus this week?
The Sydney Airport (ASX:SYD) share price has gained 37% in the last 6 months
Transurban (ASX:TCL) share price could get boost from WestConnex rumour
Why some investors may be hoping the Sydney Airport (ASX:SYD) share price falls

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!