Sydney Airport has agreed to accept a takeover deal from a consortium of investors for A$23.6 billion.
If finalised, the transaction will be one of the largest buyouts in Australian history.
The agreement came after Sydney Aviation Alliance (SAA) increased its proposal after its owner rejected its initial offer.
However, the proposed sale is subject to various potential roadblocks, which means the process could take months longer than anticipated.
“The Sydney Airport Boards believe the outcome reflects the airport’s appropriate long-term value and unanimously recommend the proposal to security holders, subject to customary conditions such as independent expert approval and the absence of a superior offer,” Sydney Airport Chairman David Gonski said in a stock exchange statement.
The plan to acquire Australia’s largest airport operator was announced days after the country reopened its borders to international travel.
For the first time in more than a year and a half, fully vaccinated international visitors have been allowed to enter Australia’s two largest states without being quarantined. Additionally, millions of Australians now have the freedom to go abroad.
SAA is composed of Australian enterprises IFM Investors, QSuper, AustralianSuper, and Global Infrastructure Partners of the United States.
Before the agreement can be finalised, it must cross numerous further barriers, including an independent report on the takeover.
Additionally, it requires the consent of three-quarters of the airport’s shareholders and clearance from Australian regulators.
The board of directors of Sydney Airport has stated that it intends to have meetings about the transaction in the first quarter of 2022.
The company’s shares increased by 2.8 per cent in Monday trading on the Sydney Stock Exchange.