Sydney Transport Partners (STP), a consortium which includes the Transurban Group, and global institutional investors, has clinched the remaining 49% of the Sydney toll road, WestConnex, for A$11.1bn (€6.9bn).
Following an auction conducted by the NSW State government, Transurban will have a 50% stake in WestConnex. AustralianSuper will hold 20.5%, CPP Investments 10.5%, Abu Dhabi Investment Authority’s Tawreed Investments will hold 9% and Caisse de depot et placement du Quebec (CDPQ) will hold a 10% stake as it joins the STP consortium.
Australian-listed toll road operator Transurban said CDPQ would contribute 20.5% of STP’s funding requirements for its interest in the STP consortium.
STP acquired its initial 51% of WestConnex in 2018 for A$9.26bn, and now has full ownership of the 70km toll road which has close to 40 years of concession life remaining.
“This sale is part of our prudent, long-term strategy to bolster the state’s finances, which also supporting the NSW economy by investing in job-creating projects that will drive our COVID economic recovery,” NSW state treasurer, Dominic Perrottet, said.
Transurban’s chief executive officer, Scott Charlton, said WestConnex had an enterprise value of A$33bn, based on the deal. “WestConnex is a key component of the NSW Government’s integrated transport plan to ease congestion and connect communities in Sydney,” he said.
Transurban is raising A$4.22bn in new equity to fund the acquisition. It is raising A$3.97bn in a fully underwritten rights issue.
It had also made a strategic placement of A$250m to AustralianSuper – on top of the super fund’s full entitlement in the rights issue.
AustralianSuper’s head of infrastructure, Nik Kemp, said: “Not only does our investment in WestConnex benefit our 2.4m members through the investment returns it generates on their retirement savings, it also contributes to better transport outcomes that benefit the NSW economy and the broader Sydney community that drive on WestConnex roads every day.”
WestConnex has close to 40 years of concession life remaining.
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