Canadians circle West Connex toll road share

The announced scoping study for a potential sale of the remaining 49 per cent interest in the WestConnex toll road could explain the discussion in the market about OMERs examining two targets in Australia.

It is understood the Canadian pension fund has two targets on its radar in the infrastructure space in the local market, and now some question whether one of them could be the Sydney-based toll road operator.

Others suggest another acquisition it could be exploring is a purchase of the buses business Kinetic, part of which is up for sale through OP Trust.

On Friday, the NSW government announced a scoping study would be launched for the 49 per cent stake in WestConnex that has not yet been sold.

It comes after Transurban and its backers, including the Abu Dhabi Investment Authority, the Canada Pension Plan Investment Board and Australian Super bought a 51 per cent stake in Sydney Motorway Corporation, the entity building WestConnex, for $9.26bn.

Now investment banks are expected to line up to secure the scoping study role, with groups including UBS, Goldman Sachs, Royal Bank of Canada, Citi and JPMorgan all likely contenders.

Groups that were in the mix for WestConnex last time around are expected to be around the hoop, including parties such as Cintra and Abertis, while Atlas Arteria could also possibly be a contender.