Why have Sydney Airports (SYD) shares rallied today?
SYD +32.01%: shares in Sydney Airport (SYD) have traded to levels not seen since Australian cities first lockdown due to COVID after receiving a takeover offer. A consortium of investors including QSuper, IFM Investors and Global infrastructure Management have launched an all cash offer at $8.25/sh for the international and domestic airport. While the board of Sydney Airport have yet to formerly reject the offer, the announcement noted that the bid was “below where Sydney Airport’s security price traded before the pandemic” and has come when the assets value has been weighed on by travel restrictions. While the initial bid is unlikely to get up, it does show the sheer amount of money looking for quality infrastructure assets which has helped other stocks higher, including Transurban (TCL) +2.2% and Atlas Arteria (ALX) +3.82%. It has also buoyed travel stocks with peer Auckland International Airport (AIA) trading around 7% higher today and Qantas (QAN) putting on over 2.5%.
