When was the best day on the Sydney Airport (ASX:SYD) share price chart?

Shares in the company surged more than 34% early in July, following a buyout offer.

A man sits in the airport terminal with a laptop and credit card, ready to make a travel booking.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price was first listed on the ASX in mid-August 2002.

With nearly two decades to sift through, finding the biggest percentage move for Sydney Airport shares is nigh impossible.

In the past 18 months alone, the Sydney Airport share price has reacted sharply to several catalysts.

One of the best days for shares in Sydney Airport can be traced back to early July of this year.

Sydney Airport share price boosted by takeover offer

The Sydney Airport share price received a huge boost early last month.

Shares in the company surged more than 34% for the day, following a $22.6 billion buyout offer.

A consortium of infrastructure investors – IFM Investors, Global Infrastructure Management, and QSuper – launched the takeover offer, valuing Sydney Airport at $8.25 per share.

Sydney Airport's management initially noted that the takeover offer of $8.25 per share was below where shares in the company were trading pre-pandemic.

Before the COVID-19 pandemic, the Sydney Airport share price was trading at around $8.95.

Since then, the company has raised approximately $2 billion in equity and seen its share price peak and trough.

In addition, rumours began to swirl that another consortium led by Macquarie Group Ltd (ASX: MQG) was considering a counter bid.

Sydney Airport formally rejected the takeover offer for 100% of its shares in mid-July.

Outlook for Sydney Airport shares

Sydney Airport is Australia's largest international gateway. The company generates revenue through aeronautical, retail, property, car rental and parking operations.

With widespread COVID-19 lockdowns hampering the Australian travel sector yet again, Sydney Airport could receive extra attention this reporting season.

Investors have long favoured shares in Sydney Airport for their dividend yield.

However, the infrastructure giant has approximately $10 billion in debt attached to its balance sheet.

In addition, Sydney Airport recently flagged a 56.8% decline in domestic traffic compared to pre-pandemic levels in 2019.

These factors could raise the concerns of some investors, especial given the indefinite reopening of free travel.

Sydney Airport will release its 2021 half-year results on Friday 20 August.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Big dividends: A 7% ASX ETF to buy for income this week

This ETF is a great choice when you can't find anything else...

Read more »

A woman sits at a table with notebook on lap and pen in hand as she gazes off to the side with the pen resting on the side of her face as though she is thinking and contemplating while a glass of orange juice and a pair of red sunglasses rests on the table beside her.
Dividend Investing

The smartest ASX dividend shares to buy with $3,000 right now

These businesses offer a pleasing dividend yield and great value.

Read more »

Happy woman working on a laptop.
Dividend Investing

The smartest ASX dividend stocks to buy with $1,000 right now

High yields are hard to find these days.

Read more »

Different Australian notes.
ETFs

Own the Vanguard US Total Market Shares Index ETF? Here's your next dividend

Vanguard announced the final distribution amount for VTS ETF investors today.

Read more »

ETF written on cubes sitting on piles of coins.
ETFs

Own SPDR ASX ETFs? Here is your next dividend and when you'll receive it

State Street Global Advisors announced distribution payment amounts and dates today.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Dividend Investing

Forget CBA shares and buy these ASX dividend stocks

Analysts think these shares are better buys that CBA right now.

Read more »

A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.
Dividend Investing

3 ASX dividend shares to buy to beat falling interest rates

Analysts think these buy-rated shares could generate great yields.

Read more »

An oil refinery worker stands in front of an oil rig with his arms crossed and a smile on his face as the Woodside share price climbs today
ETFs

This ASX ETF has a 4% dividend yield. Should you buy for income?

There aren't too many ETFs offering more than 4% right now...

Read more »