Here’s what sent the Sydney Airport share price plummeting on its worst day on the ASX
The post When was the worst ever day on the Sydney Airport (ASX:SYD) share price chart? appeared first on The Motley Fool Australia. –
The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price’s worst day ever saw it fall 22.25% in a single session.
The ASX travel sector has faced unprecedented challenges over the last 18 months, leaving some market watchers to expect Sydney Airport’s most devastating session to have been recently. However, that’s not the case.
In fact, the worst session ever experienced by the Sydney Airport share price occurred nearly a decade ago.
Let’s take a look at what happened on 6 December 2011 to cause Sydney Airport’s stock to plummet so dramatically.
Sydney Airport share price’s worst day ever
The Sydney Airport share price’s worst day on the ASX was before it became the Sydney Airport we know today.
Prior to Sydney Airport being reborn on the ASX, it was a part of the listed MAp Group. On 6 December 2011, the MAp Group began a ‘simplification scheme’ after it offloaded its holdings in the Brussels and Copenhagen Airports and increased its holding in the Sydney Airport to 85%.
After the scheme, MAp changed its listed name to Sydney Airport Holdings.
Following the simplification, investors in what is now Sydney Airport held the same number of stapled securities as before. However, each security was changed to comprise of 1 unit in Sydney Airport Trust 1 (formerly MAT1) and 1 unit in Sydney Airport Trust 2 (formerly MAT2). Previously each stapled security also included one share in MAIL.
The scheme also included an 80 cents per stapled security cash consideration.
Those wanting to know more can find the scheme’s proposal here.
The intricacies of the market saw what was to become the Sydney Airport share price plummet a massive 22.25%. It ended its worst session ever trading for $2.76.
It also followed a ground-breaking proposal.
On 5 December 2011, the airport announced its plans to split into 2 airline-aligned precincts — one for Qantas Airways Limited (ASX: QAN) and another for Virgin Australia.
The proposal expected each airline’s international, domestic, and regional services to come together under their respective terminals’ roofs by 2019.
It also included the construction of a Qantas Engineering complex to help maintain and support Qantas’ fleet, as well as a hangar for Virgin Australia.
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Motley Fool contributor Brooke Cooper 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.