A consortium headed by toll road operator Transurban 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.
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.
AustralianSuper chief investment officer Mark Delaney said the deal would boost economic growth and provide returns that would contribute to members’ retirement savings.
“WestConnex is a high-quality road network and is vitally important to the NSW economy,” Mr Delaney said.
“We commend the NSW government for its willingness to harness superannuation money to drive positive outcomes for the state.”