Australia-based Sydney Airport Holdings has turned down a revised $16.81bn (A$22.80bn) buyout bid from a group of infrastructure investors, citing that it undervalues the airport operator.

However, it indicated that it is ready to consider a higher offer.

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In the latest proposal, the Sydney Aviation Alliance consortium comprising IFM Investors, QSuper and Global Infrastructure Partners increased its offer to $6.20 (A$8.45) a share from the previous offer of $6.05 (A$8.25) a share.

The board members of Sydney Airport unanimously rejected the revised offer after discussing it with their financial and legal advisers.

In a statement, the airport said: “The boards have carefully considered the revised indicative proposal, including obtaining advice from their financial and legal advisers.

“The boards have unanimously concluded that the revised indicative proposal continues to undervalue Sydney Airport and is not in the best interests of Securityholders.”

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Notably, the board turned down the previous offer last month that valued the airport at $16.5bn (A$22.26bn).

The statement from Sydney Airport added: “In coming to this conclusion, the current environment does not change the boards’ view of the long-term value.

“The boards also note the rapid increase and acceleration in Australian vaccination rates in recent weeks and the governments’ plans to progressively ease restrictions as the population reaches vaccination targets, which will then see the reopening of travel.”

Sydney Airport also said that it has strengthened its balance sheet and restricted its expenses to respond to a range of recovery scenarios.