Transurban has gone into a trading halt amid reports it is going to buy a major toll road owned by BrisConnections for up to $2 billion.
The toll road operators says it will be making an announcement on an acquisition and a fully underwritten entitlement offer.
The AFR’s Street Talk quoted sources as saying Transurban has acquired BrisConnections-owned tollroad AirportLinkM7 for between $1.8 billion and $2 billion.
Transurban, which has a market cap of about $19 billion and manages toll road networks in Australia and the US, closed yesterday at $10.32. The rights issue is expected to be at a 5% to 7% discount to that price.
The company’s toll revenue was up by almost 40% to $1.56 billion in 2015. It operates toll roads including Sydney’s Lane Cove Tunnel, Melbourne’s CityLink and a network in Brisbane.
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