Sydney Airport acquires full ownership of airport structure

ASX-listed Sydney Airport purchases remaining 15.2% stake in Sydney Airport.

Sydney Airport (SYD) has acquired the remaining interest in Sydney Airport that it does not already own, moving it to 100% ownership.

In a statement to the Australian Securities Exchange, Sydney Airport said it had agreed purchase the remaining 15.2% interest in Sydney Airport.

"The acquisitions have been structured to ensure that there is no ownership dilution of our 38,000 existing Sydney Airport investors which include many of the world’s largest superannuation funds and thousands of Australian retail holders," the group said.

"These investors continue to hold the same proportionate interest in Sydney Airport’s predictable, resilient and growing cash flows."

The group said most of the unlisted minority investors had chosen to retain their investment in Sydney Airport through swapping their unlisted stake into the proportionate number of listed securities.

"Continuing minority investors hold 11.3% of Sydney Airport and are long-term infrastructure investors which have held significant interests in Sydney Airport Ltd and Sydney Airport over many years: Public Sector Pension Investment Board (PSP Investments), the Future Fund, Motor Trades Association of Australia Superannuation Fund Pty Ltd (MTAA), UniSuper," the statement said.

The remaining unlisted minority investors, holding a combined 3.9% of Sydney Airport, will exit their investment in exchange for cash proceeds. to be raised from a fully underwritten institutional placement which is being conducted today.

The proposed simplification is subject to a number of approvals, including investor approval at an extraordinary general meeting and scheme meeting.

Sydney Airport shares went into a trading halt ahead of the announcement.

The group also announced it had agreed in-principle terms to settle all matters concerning deductibility of distributions paid on Sydney Airport Redeemable Preference Shares (RPS) with the Australian Taxation Office (ATO).

Sydney Airport reaffirmed its 2013 distribution guidance of 22.5 cents per stapled security