Sydney Airport (ASX:SYD) share price struggles amid latest takeover blow

Why are Sydney Airport shares failing to fly today?
The post Sydney Airport (ASX:SYD) share price struggles amid latest takeover blow appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) is shaking off the shackles today, it seems.

The ASX 200 is giving investors a healthy 1.1% bump so far at the time of writing and is now trading at 7,377 points.

But one ASX 200 share isn’t joining the party. That’s Sydney Airport Holdings Pty Ltd (ASX: SYD).

The Sydney Airport share price is bucking the ASX 200’s positive mood today. The airport operator is down 0.36% to $8.21 a share so far.

So, why is this blue-chip share not keeping up with the ASX 200?

An avalanche of takeover offers

Well, if you weren’t aware, the most consequential catalyst behind the Sydney Airport share price of late has been the avalanche of potential takeover offers received by the company.

This saga has been going on for a few months now. But the stakes were raised once again just last week.

That was when a consortium of potential investors, including IFM Investors and QSuper, increased their prior bid of $8.45 a share for Sydney Airport to $8.75 a share.

The Sydney Airport board told investors on Monday that it is satisfied with this offer. It said it will grant the consortium “due diligence on a non-exclusive basis”. This allows the offer to move forward towards a binding proposal.

However, we got some news today that might be impacting the Sydney Airport share price in this light.

What’s keeping the Sydney Airport share price grounded today?

According to a report in the Australian Financial Review (AFR) today, some investors are planning on voting against the proposed takeover offer. This protest vote is reportedly on the grounds that “mega funds like IFM Investors are forcing smaller shareholders out of good Australian companies”, according to the article.

Michael Pinn, director of financial advisory group Pinn Deavin and a long-term Sydney Airport shareholder told the AFR:

The takeover parties are offering $8.75 per share because they think it is worth more than that. There is no long-term windfall in this offer for the current shareholders …

This behaviour forces small investors to either consider poorer quality investments, or to allow these mega funds to manage their money for them so as to access the better quality investments.

If enough Sydney Airport shareholders share a similar sentiment, then it could potentially throw a spanner into the proverbial takeover works.

The takeover offer hinges on at least 50% of voting shareholders casting an affirmative vote.

Sydney Airport share price snapshot

Sydney Airport shares are up 28% year to date and 41.5% over 12 months.

At the current Sydney Airport share price, the company has a market capitalisation of $22.18 billion.

The post Sydney Airport (ASX:SYD) share price struggles amid latest takeover blow 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

APA Group (ASX:APA) share price jumps on strong support for its takeover bid
Why the Transurban (ASX:TCL) share price just got upgraded by a leading broker
Sydney Airport (ASX:SYD) board recommends revised takeover proposal. What could this mean for shareholders?
This year’s ASX 200 Santa Rally to get a whopping $84bn cash boost

Lithium surge, Sydney Airport takeover, ACCC torches Qantas deal. Scott Phillips on Nine’s Late News

Motley Fool contributor Sebastian Bowen 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!