Transurban buys Sydney toll road stakes for $4.5B
- Transurban has agreed to buy CPP Investments’ stakes in two major Sydney toll road networks for $4.5 billion.
- The company will fund the cash transaction using committed debt facilities rather than raising new equity.
- Management expects the expanded stakes to boost free cash flow per security over the medium and long term.
Transurban (ASX:TCL) agreed to acquire additional ownership stakes in NorthWestern Roads Group and Sydney Transport Partners from Canada Pension Plan Investment Board for $4.5 billion.
The deal increases the group's ownership in NorthWestern Roads Group to 75% and Sydney Transport Partners to 60.5%.
"WestConnex, Westlink M7 and NorthConnex provide options for Sydney motorists as they move around the city and will play an important role in supporting Sydney’s growth for decades to come," said Transurban CEO Michelle Jablko.
The assets in the deal include Westlink M7, NorthConnex, and WestConnex, which have long-dated concessions extending up to 2060.
The transaction will not impact FY27 free cash distributions or change tolls for motorists, and following the announcement, the Transurban share price was unchanged at $13.24.
The company stated that the transaction supports its weighted average concession life across its Australian urban toll road portfolio.
Transurban noted that CPP Investments has been a long-term investment partner and that the economic ownership shift will not alter substantive governance rights.
