If successful, the purchase of Australia's biggest airport would be one of the country's largest-ever by enterprise value in U.S. dollar terms, on par with the $22 billion purchase of mall operator Westfield Group by Unibail-Rodamco in 2017, Refinitiv data showed. Share. We pay respect to Elders past, present and emerging, and recognise the continuation of cultural, spiritual and educational practices of First Nation peoples throughout Australia. It has not made a final decision. So it's a matter for the New South Wales Government who are actually building it, as they're the contractors. Sydney Airport declined to comment. Help using this website - Accessibility statement. Importantly, the new offer was high enough to gain approval from Sydney Airports board, which had rebuffed the two earlier offers, and end a two-month deadlock. It means a binding deal could be signed as early as next month, and IFM Investors and the other investors could formally take control of the company early next year. The Omicron variant of COVID-19 has disrupted the aviation industrys recovery, with Virgin Australia suspending flights because of staff being ill with the virus or isolating. Under this planning framework, airports prepare a Master Plan incorporating an Airport Environment Strategy (AES) which sets a 20-year strategic vision for the airport site. Obviously, that was seen as the area that we wanted to do first. Our Sustainability Policy sets out our commitment to sustainability and our latest Sustainability Report provides a window into our strategic objectives, initiatives and performance for the year. A $23.6 billion cash takeover offer is appealing to Sydney Airport investors who are uncertain about how fast domestic and international flights will resume. Goldman Sachs, Macquarie Capital and Herbert Smith Freehills are working for Sydney Aviation Alliance. The proposal comes as record-low interest rates prompt pension funds and their investment managers to chase higher yields. The airport also makes a significant contribution to the local and national economies. See here for a complete list of exchanges and delays. Members of the government have become increasingly concerned about the rising power of industry superannuation funds. Trading volumes of Sydney Airport's shares have soared as some investors sell the company's stock and take profits rather than wait for a formal $23.6 billion takeover bid to land. Sydney Airport's SLL represents the first syndicated SLL in Australia, largest syndicated SLL across the Asia Pacific and largest syndicated airport SLL globally. read more. We have mapped the SDG framework against our sustainability strategy to show how we are contributing to the achievement of the SDGs. The board is understood to have granted IFM Investors and its bid partners due diligence, which would start this week. At IFM, in seeking to act in the best interests of our investors, we pursue financial returns that aim to both protect and grow the long term value of their investments, and contribute to the social, economic and environmental wellbeing In the end, Sydney Airport did well to get two increases out of the Sydney Aviation Alliance, at a time when there has been no competing offer. 2021 half year. Typically issued within 12 . UniSuper chief investment officer John Pearce said the superannuation fund was always looking to buy and hold quality assets at a reasonable price.. Trading volumes in the stock, which typically average around 7 million shares, also trebled, hitting their highest levels since the airport was first approached by the IFM consortium in early July. The consortium requires UniSuper to retain as part of the takeover agreement so that it will have enough Australian-based owners to meet foreign ownership rules. Mr Pinn wants the competition regulator to focus on the bigger picture if a Sydney Airport transaction which has been backed by some institutional investors proceeds and examine how a small group of people are gaining influence and control over Australias airports. IFM already owns stakes in Melbourne, Brisbane, Perth, Adelaide airports as well as NT airports, which include Darwin, Alice Springs and Tennant Creek airports. We think that it would be hard for an alternate bidder to come forward given the parties involved here are the key players of Australian infrastructure and foreign ownership is limited to 49 per cent.. The Scheme Consideration was paid out on the implementation date, Wednesday 9 March 2022. Ben Clark, TMS Capital portfolio manager. Sydney Airport acknowledges the Traditional Custodians of the lands, waterways and skyways where we work and in which we live. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. The consortium has not declared its offer to be final, which leaves the door open for negotiations for a higher price. The strategy forms an integral part of our broader business strategy and supports the delivery of our purpose: to make Sydney proud every day. Sydney Airports biggest investor, UniSuper, which has a 15 per cent stake, reacted favourably to the takeover proposal, which requires that the superannuation fund keeps its equity holding and not sell for cash. Follow the topics, people and companies that matter to you. Our sustainability strategy responds to a changing world, and to the challenges and opportunities that shape business in Australia and globally. Infrastructure assets are attractive to big investment and superannuation funds because they provide stable long-term returns, and often have concessions that allow prices to be increased in line with or above the rate of inflation. More than 7.5 million passengers passed through Sydney, Melbourne and Brisbane in January despite airfares remaining higher for longer. Some investors have questioned why they should sell their shares when the airports biggest investor, UniSuper, will keep its 15.01 per cent equity stake. We are absolutely disgusted by the boards narrow view of a monopoly (if not oligopoly) business and their absolute failure to consider the long-term position, Mr Robilliard said. Within Master Plan 2039, the Airport Development Plan outlines options to improve to the airfield, aviation facilities, terminals and infrastructures to support the forecast increase in passenger numbers and aircraft movements to 2039. Australia's mandatory retirement savings system, known as superannuation, has assets of A$3.1 trillion, according to the Association of Superannuation Funds of Australia. 2013 Sydney Airport Tax Statement Guide. The industry leader for online information for tax, accounting and finance professionals. UniSuper, which also holds stakes in Adelaide and Brisbane airports, said it was not a consortium partner nor privy to any details outside information disclosed publicly. In a global first, Western Sydney International (Nancy-Bird Walton) Airport has provisionally secured its three-letter code more than three years ahead of opening, with the code WSI ensuring that the airport will truly take Western Sydney to the world. It is understood IFM Investors, represented by chairman Greg Combet and on behalf of the Sydney Aviation Alliance syndicate, presented Sydney Airport chairman David Gonski with the revised bid over the weekend. We need to make sure that there is some diversity, and that the public has access [to assets], he said. "In securing WSI, our new airport has joined . Picture taken October 25, 2017. Only a handful of airports globally are still listed on securities exchanges, including Auckland Airport, Frankfurt Airport in Germany and Paris Charles de Gaulle and Orly airports. Master Plan 2039 acknowledges that continued growth of Sydney Airport is crucial to achieving local, state and national employment, tourism and development objectives. Follow the topics, people and companies that matter to you. 2012 Sydney Airport Tax Statement Guide. Sydney Airports current Master Plan runs through to 2039. IFM Investors is bidding with US infrastructure investment firm Global Infrastructure Partners and domestic superannuation funds AustralianSuper and QSuper. REUTERS/Steven Saphore. But . We also make a significant contribution to our local and national economies, generating $38 billion in economic activity a year. https://www.sydneyairport.com.au/ Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. The indicative price is below where Sydney Airports security price traded before the pandemic.. 2020 Sydney Airport Full Year Results Release. Sydney Airport noted the offer was below its pre-pandemic share price and said it would review the proposal, which is contingent on granting due diligence and recommending it to shareholders in the absence of a superior offer. It is our international gateway and an essential part of our transport network, connecting to more than 90 destinations around the world. Operational efficiency and continuous improvement, Cyber security, technology and innovation. Sydney Airport acknowledges the Traditional Custodians of the lands, waterways and skyways where we work and in which we live. Any takeover is always based on the self-interest of the takeover group, and if they think theres an upside to justify their actions, then we hold the same view, and wish to benefit from our foresight in being shareholders, and not see that benefit passed off to a bunch of opportunists striking at a time of some corporate distress, Mr Robilliard wrote in the letter seen by the Financial Review. Other states have closed borders to Sydney residents. This is perhaps where a bid offers investors with some valuation uncertainty.. Wed hate to lose it because where do you put that money? Sydney Airport, alongside other leased Federal airports in Australia, is subject to a planning framework in the Airports Act 1996. its final regulatory approvals in December. JPMorgan forecasts the airports international passenger numbers will still be down 65 per cent in 2022 compared with 2019 and not return to pre-COVID-19 levels until 2024. Sydney Airport is one of Australia's most important pieces of infrastructure. It used a discounted cash flow model based on information provided by the airport to calculate its valuation but said there were uncertainties in its underlying assumptions, including the timing of the aviation recovery, the outcome of negotiations with airlines on aeronautical charges in 2022 and 2023, and the airports ability to cut costs. We pay respect to Elders past, present and emerging, and recognise the continuation of cultural, spiritual and educational practices of First Nation peoples throughout Australia. The goal of this regulation is to create harmonised rules for financial market participants and financial advisers regarding the integration of sustainability risks in investment decision-making, and the consideration of adverse impacts Follow the topics, people and companies that matter to you. The latest price offered by the consortium was pretty attractive over a one- to three-year horizon given uncertainty about when state and national border restrictions would ease and how fast air travel would rebound after the COVID-19 pandemic, Mr Clark said. The numbers of investors holding stock is important because under the scheme of arrangement transaction proposed by the IFM consortium, at least 50 per cent of the number of shareholders who turn up to vote on the deal must approve it for the deal to succeed. James Brickwood. If the deal completes, it would be the biggest ever cash takeover in Australias history. The purchase, with an enterprise value of A$30 billion including debt, would allow them to reap financial benefits when borders reopen and travel demand rebounds. UniSuper also has a favourable view of the consortium partners," the fund said. JPMorgan said the latest offer values the airport at an enterprise multiple of 23.3 times 2019 earnings, compared with its pre-COVID-19 valuation estimate of 21.5 times earnings. Planned improvements to the ground transport network to accommodate increased passenger, visitor, staff and freight traffic requirements to 2039 are also included. 2007 MAp Tax Statement Guide. Sydney Airport acknowledges the Traditional Custodians of the lands, waterways and skyways where we work and in which we live. UniSuper said it saw merit in the airport being converted from a publicly listed company to an unlisted company and that it had a favourable view of the consortium partners. It has valued the airports equity at up to $24 billion, including the potential value of commercial property development, and deducted almost $50 million of liabilities plus another $28 million that would be used to pay out performance rights if the deal succeeds. SYDNEY, July 5 (Reuters) - A group of infrastructure investors has proposed one of Australia's biggest-ever buyouts, a A$22.26 billion ($16.7 billion) purchase of Sydney Airport Holdings. Both sides of the deal have spent ample time talking to Sydney Airports institutional investors. A shift to private ownership would benefit UniSuper because Sydney Airport would be de-listed, reducing costs, and it would no longer have to mark down the value of its investment when the airports stock tumbles, as it has during the pandemic. of the communities in which they live. Mr Pinn also argues that privatisations and takeovers of the nations infrastructure assets are not fairly redistributing wealth among Australians because many of the funds buying them are foreign entities that take advantage of tax havens. We believe that by focussing on sustainable growth, we will deliver long-term value for our stakeholders. Sydney Airports innovative Sustainability Linked Loan (SLL) determines if the companys bank debt facility margins will decrease or increase depending on our sustainability performance over time. In a statement, Sydney Airport . Barrenjoey, UBS and Allens are advising Sydney Airport. Macquarie Group divested its holdings in 2013 and UniSuper is now Sydney Airports biggest shareholder. SYDNEY, July 5 (Reuters) - A group of infrastructure investors has proposed one of Australia's biggest-ever buyouts, a A$22.26 billion ($16.7 billion) purchase of Sydney Airport Holdings Pty Ltd, taking a longer-term view on the pandemic-battered travel sector. There is not a whole lot of choice out there if you trade through public exchanges. Sydney Airport, one of the few remaining airports still listed on a stock exchange anywhere in the world, has been snared by the global M&A boom after a group of big investors pounced on its pandemic-stricken share price to lob a $22 billion takeover bid. He claims small investors are being disenfranchised by big funds that use their money and lobbying power to buy good Australian companies. AustralianSuper is part of the consortium trying to buy Sydney Airport and holds stakes in several other big infrastructure assets, including tollroads managed by Transurban and NSWs Port Botany. For any questions about your past Sydney Airport Securityholdings, please contact Computershare Pty Ltd (Sydney Airports security registry) by calling +61 (0)3 9415 4000 or 1300 850 505 (within Australia). The biggest deal belongs to Westfield Corporation, which was acquired in a cash and scrip deal in 2018. It also sets out our approach to incorporate sustainability into the planning and design for future Sydney Airport expansion. Euphoria star Sydney . Domestic travel has also been disrupted by a two-week lockdown in Sydney during the normally busy school holiday period, after an outbreak of the highly contagious Delta variant of COVID-19. SYDNEYA group of infrastructure investors submitted a nearly $17 billion takeover bid for Sydney Airport, the operator of Australia's busiest airport, signaling that investors are. GIP also owns stakes in Edinburgh Airport and Londons Gatwick. With record-low interest rates, funds are looking at infrastructure investments for higher yields. Theres a lot more value in this asset than the market has been ascribing, Mr Clark said. Master plans include future land uses, noise and environmental impacts. IFM holds stakes in major airports in Melbourne, Brisbane, Perth and Adelaide. The Sydney Airport board recommended shareholders vote to accept the offer. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. In Sustainalytics opinion, the loan aligns with the Loan Markets Associations Sustainability Linked Loan Principles. 2021 half year. [1/2]Passengers walk with their luggage towards departure gates at Sydney International Airport in Australia, October 25, 2017. QSuper owns a stake in Britain's Heathrow Airport whereas Global Infrastructure is invested in that country's Gatwick and London City airports. The consortium, named the Sydney Aviation Alliance, is understood to have a positive view on the eventual return of global air travel as vaccines are distributed, as well as Australias future economic and population growth and the need for people to fly around the country. ", Australia's international borders are widely expected to remain closed until at least the end of the year due partly to a slower vaccination programme than in most developed countries. Sign up for the latest offers Sydney Airport, one of the few remaining airports still listed on a stock exchange anywhere in the world, has been snared by the global M & A boom after a group of big investors pounced on . The Sydney Aviation Alliance - a consortium comprising IFM Investors, QSuper and Global Infrastructure Partners - has offered A$8.25 per Sydney Airport (SYD.AX) share, a 42% premium to the stock's Friday close. If a proposed development has the potential to impact the environment, an environmental assessment must be undertaken. Due diligence should be relatively straightforward in this instance given the nature of the company and the pedigree of the consortium in the sector.. Its stock soared 34 per cent on Monday to close at $7.78, its highest level since February 2020. Some Sydney Airport investors dont want it to be sold off to big funds. There is no long-term windfall in this offer for the current shareholders.. The Sydney Airport takeover, one of Australia's biggest-ever buyouts, was backed by 96% of proxy votes cast, but 20.4% of shareholders representing a 4% stake . Operational efficiency and continuous improvement, Cyber security, technology and innovation. Sydney Airports board led by new chairman David Gonski, who replaced Trevor Gerber at the companys annual general meeting in May is still considering the takeover offer and has told shareholders to take no action. The world for tax, accounting and finance professionals for tax, accounting and finance professionals and entities globally help. Proposal comes as record-low interest rates prompt pension funds and their investment managers to chase higher yields its. 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