The Sydney Airport (ASX: SYD) share price is dipping during late afternoon trade. This comes after Australia's largest airport operator provided an update on the non-binding proposal from the Sydney Aviation Alliance (Consortium).
At the time of writing, Sydney Airport shares are travelling 0.84% lower to $8.30 apiece.
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What did Sydney Airport announce?
In today's statement, Sydney Airport advised that the due diligence period for the Sydney Aviation Alliance takeover bid has concluded.
This follows a revised conditional and non-binding proposal received on 13 September, offering $8.75 cash per stapled security. This represents a 9.4% premium to the Sydney Airport share price at the last closing price before the announcement on 10 September. It is also an increase on Sydney Aviation Alliance's previous offers of $8.25 cash per share on 5 July and $8.45 cash per share on 16 August.
The Sydney Airport board stated that it's continuing to negotiate the transaction documents to the relevant parties of the consortium. It is expected that this will be internally approved in the coming weeks. However, the board noted that this is no absolute guarantee.
If the consortium gives the green light, the Sydney Airport shareholders will need to vote in favour of the transaction. The board has previously put forward its recommendation saying the improved offer represents the best interests for Sydney Airport securityholders.
Once this is completed, Sydney Airport and the consortium will enter into a mutually acceptable scheme implementation deed. Although, this would be subject to several conditions, including court and regulatory approvals.
For now, Sydney Airport shareholders will need to wait until the company comes back with more news on the proposal.
Sydney Airport share price snapshot
Over the past 12 months, Sydney Airport shares were mostly tracking sideways until the takeover proposal announcement. Since then, the company's shares have skyrocketed to near pre-COVID highs.
Currently, its shares are registering a 40% gain from this time last year, and hovering just below 30% for year-to-date.
Sydney Airport presides a market capitalisation of roughly $22.36 billion and has approximately 2.7 billion shares on its books.
