A consortium led by toll road giant Transurban (ASX:TCL)
will take full control of WestConnex after signing a deal with the NSW government for a 49 per cent stake in the road with a bid of $11.1 billion.
The sale was finalised to Sydney Road Partners, consisting of Transurban, AustralianSuper, Canada Pension Plan Investment Board and Abu Dhabi’s sovereign wealth fund.
The news comes after Sydney Road Partners bought a 51 per cent stake in WestConnex in 2018 and will now own 100 per cent in the Sydney motor-way network after the NSW government put the remaining stake up for sale in November last year.
CEO Scott Charlton says, “WestConnex is one of the largest road infrastructure projects in the world with an enterprise value of $33 billion based on this transaction. WestConnex is a key component of the NSW Government’s integrated transport plan to ease congestion and connect communities in Sydney.”
Transurban’s contribution to the acquisition will be funded through a combination of equity raising and existing corporate liquidity. Transurban will raise $4.2 billion, including $3.97 billion through a fully underwritten entitlement offer to eligible shareholders at $13.0 per share.
Shares in Transurban Group (ASX:TCL)
are in a trading halt this morning and last traded at $14.18 on Friday.