Sydney Airport has received an $8.75 non-binding offer from the IFM consortium, above the previous offer, and the board is granting non-exclusive due diligence.
Credit Suisse assesses foreign and cross-holding ownership restrictions, as well as the size of the deal, make a competing bid unlikely. The broker assigns a high probability to the deal proceeding and raises the target to $8.75 from $8.00. Neutral retained.
Sector: Transportation.
Target price is $8.75.Current Price is $8.37. Difference: $0.38 – (brackets indicate current price is over target). If SYD meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
