Sydney Airport has rejected a monster $22bn bid from a group of investors.
Last week, a group of infrastructure investors got together to try to buy Sydney Airport. They offered a 42% premium on the share price.
But now, Sydney Airport has officially turned down the $22 billion buy-out offer.
Even though $22 billion sounds like a lot, the Sydney Airport Board reckons it was a tad opportunistic, and that the airport is actually worth much more.
Sydney Airport didn't rule out selling if there was a better offer on the table.
The more a buyer pays for an investment (ie Sydney Airport), the harder it becomes for that buyer to make a financial return.
Since there are restrictions on flight numbers at Sydney Airport, it means price hikes may be the way forward if the takeover is successful down the track.
For airports, there are a few ways to increase their revenue:
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