By Mike Cherney

SYDNEY--Sydney Airport, Australia's busiest airport, said that it received a higher takeover offer from a consortium of infrastructure investors and that it intends to recommend that shareholders approve the deal.

The revised bid is worth 8.75 Australian dollars (US$6.44) per share, valuing the airport at A$23.6 billion. It's the third time the consortium, calling itself the Sydney Aviation Alliance, has bid for the airport. The airport rejected previous bids of A$8.45 per share and A$8.25 per share as too low.

Sydney Airport said it intends to grant the consortium the opportunity to conduct due diligence, a process that is expected to last about four weeks. The airport said that absent a superior proposal and subject to other factors, the board intends to recommend that shareholders vote in favor of the takeover bid.

The airport added that the consortium's offer is not yet binding and there is still no certainty that the deal will go through.

Write to Mike Cherney at mike.cherney@wsj.com

(END) Dow Jones Newswires

09-12-21 1903ET