Herbert Smith Freehills and Australian firm Allens are advising a group of investment funds on a $16.7 takeover bid for Sydney Airport—a sign that investors are willing to bet on a post-pandemic recovery in global travel.

In a bid that values Australia’s main international at A$22 billion, IFM Investors, Queensland superannuation fund QSuper and United States-based Global Infrastructure Partners have offered A$8.25 per share for the airport. That offer is higher than the July 2 closing price, but below the stock’s peak of about A$9 in late 2019—before COVID-19 all but halted international travel.