Transurban to pay A $11. 1 B stake in Sydney tunnel network

Bloomberg - - Sydney transurban group and three partners will pay A $11.1 billion $8.1 billion to acquire the remaining half stake they don t already own in a network of international travel routes.

The company s Westconnex will be revived after an auction run by the New South Wales State Government to privatize its 49% ownership of the tolled tunnel network Sydney Transport Partners, the government said in a statement on Monday.

Transurban will raise A $3.97 billion in a share sale to help finance the deal, it said in a separate statement. It will raise a further A $250 million in a placement to consortium partner AustralianSuper Pty.

This sale is part of our prudent, long-term strategy to bolster the state finances, while also supporting the NSW economy by investing in job creating projects that will drive our Covid economy recovery, state Treasurer Dominic Perrottet said in the statement.

The consortium, which also includes the Canadian Pension Plan Investment Board and Abu Dhabi Investment Authority, paid $ $9.26 billion for its initial 5% stake in August 2018. Caisse de d p t et placement du Qu bec joined the group in the new deal, said Transurban.

Transurban has an enterprise value of A $33 billion based on the deal, said Scott Charlton, executive director of Westconnex. The asset is a network of more than 70 kilometers 43 miles of toll roads, linking the central business Sydney Airport and Port Botany to the west of Sydney.