A $23.6 billion takeover bid for the Sydney Airport has been announced. 

Sydney Airport Limited has revealed it is entering into an arrangement with an international consortium that wants to acquire 100 per cent of the publicly-listed company.

The Sydney Aviation Alliance consortium comprises several Australian and international investment and infrastructure funds, including IFM's Australian Infrastructure Fund and Global Infrastructure Fund as well as AustralianSuper, QSuper and Global Infrastructure Partners.

The airport's board has unanimously recommended that shareholders vote in favour of accepting the offer. Shareholders should get a chance to vote at meetings early next year. 

The bid will also require regulatory approval. 

The deal should see Sydney Airport shareholders receive $8.75 per share, after the board rejected two earlier proposals to pay $8.25 and $8.45 per share, respectively.

Share prices dipped as low as $5.50 in February this year, but are hovering around $8.46 this week. 

“Today's announcement is the culmination of months of engagement between all parties,” Sydney Airport chairman David Gonski said this week.

“The Sydney Airport Boards believe the outcome reflects appropriate long-term value for the airport, and unanimously recommend the proposal to security holders, subject to customary conditions such as independent expert approval and no superior proposal.”

Sydney Airport will soon be joined by a second international hub for the city, with the construction of a new airport at Badgerys Creek, which is due to open in 2026.