Now departing: Farewell, Sydney Airport (ASX:SYD) shares

Australia's cornerstone aviation hub will likely shortly delist from the ASX.

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a father and his son wear masks and gaze out the window of an airport lounge onto planes on the tarmac below with an orange sunset glow in the background as they wonder whether Virgin Australia will relist on the ASX and become an ASX travel share again

Image source: Getty Images

Key points

  • Sydney Airport shareholders voted in favour of the acquisition scheme
  • The aviation hub will now be privately held
  • The consortium values the asset at $23.6 billion

Sydney Airport (ASX: SYD) shares will shortly be leaving their long-term home on the ASX.

Sydney Airport shares first listed on the exchange in April 2002. Now, subject to final approval from the New South Wales Supreme Court, Sydney Airport shares will be removed from trade as of 9 February.

How did Sydney Airport shareholders vote?

In today's vote on the company's scheme resolution, taken at 11am AEDT, 96.03% of votes were cast in favour of proceeding at the General Company Scheme Meeting.

Additionally, the airport reported that 79.29% of the total number of shareholders voting at the meeting were in favour.

Due to ongoing uncertainty from the COVID-19 pandemic, the meeting took place virtually via Sydney Airport's online meeting platform.

David Gonski, chairman of the board of directors of Sydney Airport, convened the meeting. Noting the board's prior approval of the takeover offer, Gonski said, "After careful consideration… the Sydney Airport board took the view that the cash consideration of $8.75 per security does fairly reflect the fundamental long-term value of the airport."

Sydney Airport shareholders today strongly agreed.

A bit of background

If the NSW courts approve the takeover, as is widely expected, all of Sydney Airport's 2.70 billion outstanding shares will be taken over by the Sydney Aviation Alliance – a consortium of superannuation funds.

The $8.75 per share offer values the airport at $23.6 billion.

So who will own Sydney Airport moving forward?

As my Fool colleague Brooke Cooper explained earlier this week, Sydney Airport will be purchased in part by the consortium's leader IFM Investors – owned by 23 pension funds.

Global Infrastructure Partners ­– on behalf of its managed funds and clients – is also expected to have a tight hold on the consortium.

Super funds AustralianSuper, QSuper, and UniSuper will also hold interests ranging from 7.5% to 18%.

How have Sydney Airport shares been performing?

Sydney Airport shares trended steadily higher since leaping to $7.78 per share on 6 July after the initial takeover bid, at the time $8.25 per share, hit the news.

Over the past 12 months, the Sydney Airport share price has gained an impressive 46%, despite a lack of domestic or international air travel.

By comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 4% since this time last year.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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