Sydney Airport has agreed to accept a buyout deal for A$23.6 billion (£13 billion; $17.5 billion) from a consortium of investors.
The acquisition, if finalized, will be one of Australia’s largest ever buyouts.
The deal was reached after Sydney Aviation Alliance (SAA) increased its proposal after the airport’s owner rejected its previous offer.
However, there are a lot of possible roadblocks in the way of the planned transaction, which means it might take months to complete.
“The Sydney Airport Boards think the decision reflects acceptable long-term value for the airport, and unanimously endorse the proposal to securityholders,” Sydney Airport chairman David Gonski said in a statement to the stock exchange.
The acquisition for Australia’s largest airport operator was announced shortly after the country’s borders were reopened to foreign traffic.
For the first time in more than a year and a half, fully vaccinated international tourists have been able to enter Australia’s two largest states without having to go through quarantine. Millions of Australians may now travel freely throughout the world.
SAA is made up of IFM Investors, QSuper, and AustralianSuper from Australia, as well as Global Infrastructure Partners from the United States.
Before the agreement can be finalised, it must cross a few additional hurdles, including an independent study on the takeover.
It also needs three-quarters of the airport’s shareholders’ approval, as well as clearance from Australian regulators.
The board of Sydney Airport has announced that talks on the purchase will take place in the first quarter of 2022.
On Monday, the company’s stock jumped 2.8 percent on the Sydney Stock Exchange.