Sydney’s Foreign Ownership Reduced

SYDNEY AIRPORT’S owners have announced that its foreign ownership level has decreased to 34.8% from the 35.0% previously announced.
Sydney Airport is not a ‘Foreign Person’ – the term used to describe a foreign ownership situation – under the Australian Airports Act of 1996, as long as foreign ownership of Sydney Airport is below 40%.
Sydney Airport’s constitution sets out the process for disposal of securities to prevent it from becoming a Foreign Person or to remedy the situation if it became a Foreign Person.  Should a foreign ownership situation occur, or seem likely to occur, Sydney Airport has the power to start procedures to divest foreign security holders once the foreign ownership of Sydney Airport reaches 39.5%, under the foreign ownership divestment rules that it has adopted.  If the foreign security holder fails to dispose of its Sydney Airport securities, the airport has the power to sell those securities at the best price reasonably obtainable at the time.
(Photo – SYD)