Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn


Transurban wins in $9.3bn WestConnex deal

AAP  |  31 Aug 2018Text size  Decrease  Increase  |  
Email to Friend


A consortium headed by toll road operator Transurban (ASX: TCL) has agreed to pay the NSW government $9.3 billion for a 51 per cent stake in the new WestConnex motorway.

The ASX-listed toll road giant on Friday said it will fund its 50 per cent of the deal through a $4.2 billion entitlement offer and $600 million placement to consortium partners

AustralianSuper and Abu Dhabi-controlled Tawreed Investments.

AustralianSuper and the Canada Pension Plan Investment Board each have a 20.5 per cent interest in the consortium, while Tawreed owns the remaining nine per cent.

The deal is expected to complete in September, subject to Foreign Investment Review Board approval.

The NSW government will retain a 49 per cent interest in the 33-km road, which has been described as the city's largest transport project since the Sydney Harbour Bridge was completed in 1932.

Investing Compass
Listen to Morningstar Australia's Investing Compass podcast
Take a deep dive into investing concepts, with practical explanations to help you invest confidently.
Investing Compass

Transurban already has the competition watchdog's permission to proceed despite controlling seven of Sydney's nine existing toll roads.

The Australian Competition and Consumer Commission on Thursday waved through Transurban's bid after the company agreed to publish traffic data that could help rivals bid for future toll road projects and potentially give taxpayers and motorists a better deal.

Transurban will undertake a fully underwritten, 10-for-57 entitlement offer at $10.80 per share, representing a 10.4 per cent discount to Transurban's closing price of $12.06 on Thursday, and a 8.9 per cent discount to TERP of $11.85.16

Transurban has agreed to place securities to certain STP consortium members at $10.85 per security to raise $600 million.

These placement securities will not be entitled to participate in the Entitlement Offer.



AAP logo image

© [2018] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

provides Morningstar with market news.

© 2022 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written consent of Morningstar. Any general advice or 'regulated financial advice' under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information, refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Morningstar’s full research reports are the source of any Morningstar Ratings and are available from Morningstar or your adviser. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782. The article is current as at date of publication.

Email To Friend