Taking a longer-term view of the global pandemic’s effect on air travel, the Sydney Aviation Alliance, a consortium comprising IFM Investors (IFM), QSuper and Global Infrastructure Partners, has made an offer of AU$8.25 per Sydney Airport Holdings Pty Ltd (SAH) share, a 42% premium to the stock’s close on Friday July 4. This resulted in Monday’s early trading of shares at a peak of AU$8.04, before settling back to AU$7.55 as the deal was far from settled. The figure per share offered by Sydney Aviation Alliance is still below SAH shares’ peak price of AU$8.86 in January 2020, just prior to the collapse of the air travel industry and is contingent on the airport receiving no better offer and the offer’s recommendation to shareholders.
SAH is Australia’s only listed company, with all other major airports in the country owned by consortia of infrastructure investors, predominantly pension funds. The airport has long held a monopoly on traffic to and from Australia’s most populous city, but that will end in 2026 when Western Sydney Airport opens. Sydney Aviation Alliance said it did not anticipate making major changes to the airport’s management, services, operations, or target credit ratings. The consortium said its members invest directly or indirectly on behalf of more than 6 million Australians and collectively have more than AU$177 billion of infrastructure funds under management globally, including stakes in 20 airports. IFM holds stakes in major airports in Melbourne, Brisbane, Perth, and Adelaide. QSuper owns a stake in Britain’s Heathrow Airport Global Infrastructure has invested in Gatwick and London City airports.
