You don't have credit card details available. You will be redirected to update payment method page. Click OK to continue.
When Sydney Airport (SYD) announced that they might not exercise their option to develop Badgerys Creek airport, the share price fell to under $6.
If SYD decides that the business case doesn’t stack up and does not take up their option, what likely effect will that have on the share price? If they do take up the option, what will be the effect of that?
A: The $64 question!
My sense is that if Sydney Airport does decide to take up the option, this will be more share price negative than if it decide to pass. The thinking behind this is that it will raise the spectra of a capital issue to help fund the investment.
Longer term, of course, it could be a real positive for Sydney Airport, however markets will worry more about the more immediate issues of raising capital/borrowing money and the development risk.
Regards
