An IFM-led consortium has won backing to buy Sydney Airport for $23.6bn, marking the latest of the nation’s blockbuster deals.
The deal was announced on Monday morning, after The Australian’s DataRoom reported on Sunday that an agreement was reached at the weekend.
The consortium, known as the Sydney Aviation Alliance, includes industry super fund investment arm IFM, QSuper, GIP and AustralianSuper.
The consortium has been carrying out due diligence on the airport after earlier making a proposal to buy the asset for $8.75 a share, equating to a market value of $23.6bn in what is one of the largest mergers and acquisitions transactions in Australia this year.
The binding offer being agreed upon is $8.75 per share.
The offer came after two earlier proposals for the airport had been rejected, before the board agreed to open its books when the $8.75-a-share proposal emerged.
The consortium bidding for the airport initially offered $8.25 a share, valuing the airport company at $22.3bn before revising its offer to $8.45, in the wake of state lockdowns to curb the spread of the Covid Delta strain.
The airport’s shares had been trading at $5.81 before the first bid was received, although they had been trading at $8.80 before the pandemic that largely halted international travel.
A deal to buy the airport requires clearance from the Foreign Investment Review Board and Australian Competition & Consumer Commission approval.
IFM owns a 25 per cent interest in Melbourne Airport and 20 per cent of Brisbane Airport. Under the airport ownership rules, it will not be able to own more than 15 per cent of the Sydney asset if its other holdings remain.
GIP would not be allowed to own more than 49 per cent under the airport ownership rules for foreign investors.
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