Sydney Airport shareholders approve $17 billion sale to funds

Sydney Airport shareholders overwhelmingly approved a A$23.6 billion ($17 billion) deal to sell the company to a consortium of funds, transferring Australia’s main international gateway to private ownership after the pandemic hammered earnings.

Some 96% of votes cast at a shareholder meeting on Thursday backed the sale to a group led by IFM Investors Pty for A$8.75 a share. The stock will trade for the last time next week, and the deal is due to go through in March, Sydney Airport said in a filing.

While the airport’s business was decimated by Covid-19 as global travel dried up, the company’s new owners are making a long-term bet on a recovery. Australia’s international borders have now reopened and overseas flights are slowly returning.

Sydney Airport rejected two previous bids from the consortium, starting with an initial offer of A$8.25 per share. The airport’s largest existing shareholder, UniSuper Ltd., is transferring its 15% stake into the new airport entity.