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Key points
- The fate of Sydney Airport shares will be decided this week as shareholders vote on a proposed $23.6 billion takeover
- Votes will be taken on Thursday morning AEDT, with the approval of 75% of investors needed for the acquisition to go ahead
- If shareholder approval is granted, Sydney Airport's stock is expected to be removed from the ASX on 9 February
The Sydney Airport (ASX: SYD) takeover will be voted on this week. If you own Sydney Airport shares, you'll get to have your say.
If successful, the takeover will see Sydney Aviation Alliance – a consortium of investment funds – walk away with the airport on its books.
At market open today, the Sydney Airport share price is $8.66. That's 1% lower than the consortium's takeover offer of $8.75 per security.
Let's take a look at what the market can expect from the listed airport this week.
Sydney Airport shareholders to vote on $23.6b takeover
Sydney Airport shares could be wiped from the ASX this fortnight. The airport's board has already accepted the Sydney Aviation Alliance's $23.6 billion takeover bid and is urging investors to do the same.
However, the airport's shareholders still have the power to sink the proposal. They will vote on the takeover this Thursday at 11am AEDT.
At least 75% of Sydney Airport's shareholders must vote yes for the proposed acquisition to go ahead. Additionally, another clause states that 50% of those present at Thursday's meeting must vote in favour of the takeover.
Anyone who held shares in Sydney Airport at 7am AEDT today is eligible to vote in the meeting. For interested readers, the takeover's scheme booklet can be found here.
UniSuper has a 15.01% hold in Sydney Airport. It's made a deal that will likely see it receive an equal holding in Sydney Aviation Alliance, rather than $8.75 per share in cash.
If the takeover is approved by shareholders, a second court date is expected to go ahead on 9 February. That will likely see the scheme approved and the takeover made effective.
If all goes to plan for the company's board and the consortium, Sydney Airport shares will be removed from trade as of 9 February.
The board has recommended shareholders vote in favour of the takeover. It believes the all-cash offer is fair and will see investors without risks associated with their investment.
The airport's passenger traffic numbers were still 69.7% lower than they were pre-pandemic in December of 2021.
That slump looks to have continued into the new year. Preliminary data suggests the airport saw 85% fewer international passengers and 58% fewer domestic travellers over the first 15 days of last month.
