Transurban acquires Lane Cove tunnel for $630.5m
Transurban Group (TCL) said it has reached an agreement to acquire the Lane Cove Tunnel in Sydney for $630.5 million. The company said the acquisition would be funded through a combination of equity and non-recourse project debt, which is subject to the approval of the NSW Roads and Traffic Authority.
Transurban said in order to fund the equity component it would undertake a capital raising comprising a fully underwritten accelerated renounceable 1 for 11 entitlement offer to eligible security holders to raise $542.3 million at an offer price of $4.60 per share.
The group said the capital raising takes into account its broader capital funding requirements for growth projects including the planned upgrades of the Hills M2 and M5.
The Lane Cove Tunnel sits adjacent to the Transurban-owned Hills M2.
Transurban said it has confirmed its previous distribution guidance for FY10 following the announcement of the acquisition of the Lane Cove Tunnel and the capital raising, with the second half distribution forecast at 12c per share.
CEO, Chris Lynch, said the company expects to generate value from cost savings and network enhancement opportunities through the acquisition that are uniquely available to Transurban.
Transurban shares are currently halted at $4.92.
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