Transurban’s long-awaited $4bn-plus equity raising could be set to unfold as early as Wednesday as it comes increasingly closer to gaining full ownership of the $20bn Sydney motorway scheme WestConnex.
DataRoom understands that Transurban or its advisers have been calling investors in recent days to schedule meetings for Wednesday, which most expect is to run over plans for an equity raising.
The raise is expected to be between $4bn and $5bn and include both a placement to one of its WestConnex bidding partners and a rights issue.
Expectations are that the stock could enter a trading halt from Wednesday. On Friday, it could be announced as the winner of the WestConnex auction and release details to tap the market.
Working for Transurban are Barrenjoey Capital Partners, Morgan Stanley and UBS.
The raise has been well flagged by Transurban in its results last month and analysts and market experts widely expect it to be $4bn-plus.
When Transurban purchased a 51 per cent stake in WestConnex in, it raised $4.2bn through a rights issue and a further $600m through a placement to its partners AustralianSuper and the Abu Dhabi Investment Authority.
Before that deal was announced, it also scheduled meetings with its investors, prompting speculation an equity raising was underway and that it was the winner of the auction.
The overall $9.3bn being paid to the NSW government for the 33km road project at that time was split four ways, with Transurban paying $4.1bn for its half share of the 51 per cent WestConnex interest.
AustralianSuper and Canada Pension Plan Investment Board invested $1.7bn each for their respective 20.5 per cent holdings and ADIA $700m for 9 per cent. About $1.1bn of additional debt raised by the consortium rounded out the purchase price.
Transurban runs seven of the state’s nine toll road concessions and 15 of 19 nationwide, but is thought to have already received an indication from the Australian Competition & Consumer Commission that it will gain clearance for this latest transaction.
As reported by DataRoom on Friday, the NSW government is set to announce the winner of a $4bn-plus stake in Sydney’s WestConnex this Friday, as a Transurban-led consortium continues to shape up as the party to take the prize.
The NSW government had opted to sell its remaining 49 per cent stake in the 33km motorway scheme in two tranches to create competitive tension in the auction.
Each 24.5 per cent interest on offer is likely to sell for at least $4bn.
Bids were due for the first tranche on Thursday September 9 in the process advised by Citi and RBC.
The Australian’s DataRoom column understands that the NSW government will announce the winner of the first tranche on Friday and the second tranche late Monday or Tuesday.
Transurban is believed to be bidding for both stakes in a consortium including AustralianSuper and the Abu Dhabi Investment Authority.
It is known as Sydney Transport Partners.
Transurban shares on Monday closed 18c lower to $13.80, taking its market value to $38.4bn.
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