The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is arguably having one of its best years.
Shares in the infrastructure giant have soared more than 43% in the last 12 months.
Despite widespread lockdowns and border closures, Sydney Airport shares have soared in 2021.
Let's take a look at what's been fuelling the Sydney Airport share price.
Takeover offer boosts Sydney Airport share price
There have been several catalysts helping the Sydney Airport share price in the past 12 months.
In the latter parts of last year, with most of Australia managing to control the COVID-19 pandemic, travel restrictions were lifted.
In addition, a Trans-Tasman travel bubble between Australia and New Zealand also assisted sentiment for the sector.
Despite Sydney going into a lockdown mid-way through this year, a single catalyst has helped fuel the Sydney Airport share price.
Shares in the company received a boost early last month following a $22.6 billion buyout offer.
The offer saw the Sydney Airport share price storm more than 34% on the day.
A consortium of infrastructure investors – IFM Investors, Global Infrastructure Management, and QSuper – launched the takeover offer, valuing Sydney Airport at $8.25 per share.
Prior to the offer, the Sydney Airport share price was languishing for the year.
Outlook for Sydney Airport share price
Following the takeover offer, Sydney Airport's management noted the predatory nature of the takeover bid.
The company cited that the offer of $8.25 per share was below where Sydney Airport shares were trading pre-pandemic.
Before the COVID-19 pandemic, the Sydney Airport share price was trading at around $8.95.
In addition, rumours began to swirl that another consortium led by Macquarie Group Ltd (ASX: MQG) was considering a counter bid.
As a result, Sydney Airport formally rejected the takeover offer for 100% of its shares in mid-July.
Despite rejecting the offer, the Sydney Airport share price has managed to hold onto its gains following the takeover bid.
More on Sydney Airport
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.
Sydney Airport will release its 2021 half-year results on Friday 20 August.