At least one party in addition to Transurban and its backers is understood to have put its name forward to buy a stake worth at least $4bn in Sydney’s WestConnex road project after registrations of interest were due in recent days.
Analysts expect it is $140bn infrastructure manager IFM Investors that has expressed interest in competing with Transurban for a stake of 24.5 per cent and up to 49 per cent in the road network.
Last year, Queensland Investment Corporation and Macquarie Infrastructure and Real Assets were also said to be deciding whether to enter the contest, but some believe Macquarie will be part of the Transurban camp, while QIC is unlikely to have the capital to compete.
An initial public offering of the stake is also expected to be a viable alternative to a sale.
Transurban’s consortium includes the Canada Pension Plan Investment Board, AustralianSuper and the Abu Dhabi Investment Authority sovereign wealth fund.
It bought the other 51 per cent interest in the 33km toll-road project in 2018 for $9.26bn and has pre-emptive rights to buy the other half, making it the clear frontrunner.
In 2018, IFM took on Transurban and its consortium partners in the competition, but it is understood its bid was $2bn off the pace.
Transurban is working with investment banks Morgan Stanley and UBS.
The NSW government is selling its 49 per cent stake in WestConnex in two separate tranches to create competitive tension in the auction, run by Citi and RBC.
Infrastructure investors have been focused on the auction of WestConnex, along with that for a 65.6 per cent stake in Tilt Renewables, owned by Infratil.
Goldman Sachs is working on the sale of the $1.3bn-odd Tilt stake and, as well as APA and an AGL Energy and QIC partnership, other groups bidding are understood to include New Zealand’s Mercury Energy, which is already a substantial shareholder in Tilt with 19.9 per cent.
The auction is happening as several renewable energy portfolios are on the market amid strong demand from infrastructure investors.
The listed New Energy Solar has sent out promotional material for the sale of its Australian solar farms. It plans to sell its 110MW Beryl and 55MW Manildra plants in NSW.
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