Acquisition of additional interests in Westlink M7, NCX, WCX

Key points

• Transurban to acquire CPPIB's 25% interest in NWRG and 10.5% in STP for $4.5 billion
• Increases ownership interests to 75% of NWRG and 60.5% of STP
• Acquisition expected to be value accretive and support Transurban's growth

Full summary

Transurban Group announced its agreement with Canada Pension Plan Investment Board (CPPIB) to acquire CPPIB's 25% interest in NorthWestern Roads Group (NWRG) and 10.5% in Sydney Transport Partners (STP) for a total cash consideration of $4.5 billion. Upon completion, Transurban's ownership interests will increase to 75% of NWRG, which owns Westlink M7 and NorthConnex, and 60.5% of STP, which owns WestConnex. The acquisition is expected to be value accretive and provide growing accretion to Transurban's Free Cash per security over the medium and long term, supported by the addition of the M5 West to the WestConnex concession and the opening of the Western Harbour Tunnel. The acquisition will be funded through committed debt facilities and is expected to be refinanced into longer-term debt over time. No equity funding is required.

Outlook

The acquisition is expected to be value accretive and provide growing accretion to Transurban's Free Cash per security over the medium and long term.