Atlas Arteria Limited (ASX:ALX) entered into an agreement to acquire a 66.67% stake in Skyway Concession Company, LLC from CPP Investments and OMERS Infrastructure for $2 billion on September 12, 2022. The acquisition will be funded via a fully underwritten 1 for 1.95 accelerated non-renounceable entitlement offer to raise AUD 3.1 billion ($2.1 billion). The Equity Raising will result in the issue of approximately 491.8 million new ordinary stapled securities at an offer price of AUD 6.3 ($4.3) per share. UBS Securities Australia Limited and RBC Capital Markets, are acting as joint lead managers, bookrunners and underwriters in relation to an equity capital raising to fund the acquisition. The acquisition establishes a partnership with Ontario Teachers' Pension Plan, which is retaining its 33.33% interest in Skyway Concession Company, LLC.

Skyway reported revenue of $117.4 million and EBITDA of $102 million for the June 2022 LTM. Acquisition enterprise value (on a 100% basis) of $4.403 billion representing an EV/EBITDA of 43.2x LTM EBITDA, and 37.6x 2024 estimated EBITDA. IFM Global Infrastructure Fund (IFM GIF), shareholder of Atlas Arteria Limited said that it is not supportive of the acquisition at the current price as it would be "significantly value destructive". The transaction is subject to receipt of regulatory approvals including Hart-Scott-Rodino (HSR) antitrust clearance and consent of the City of Chicago and customary conditions. As of November 28, 2022, all required regulatory approvals have been obtained in relation to the acquisition. The transaction is expected to complete in Q4 2022. As of September 14, 2022, transaction is expected to close in late 2022. As of November 28, 2022, all major conditions precedent have now been satisfied, completion of the acquisition is expected to occur by early December 2022. The transaction is value accretive for securityholders as it delivers an internal rate of return exceeding Atlas Arteria's current risk-adjusted cost of equity.

RBC Capital Markets is acting as lead financial advisor and UBS Securities Australia Limited is acting as financial advisor to Atlas Arteria for the acquisition. Evercore Partners Canada Ltd. acted as the financial advisor to CPP Investments and OMERS Infrastructure. Justin Stolte, Catherine Ozdogan, Gregory Hannibal, Eric Kamerman, James Barker, Damara Chambers, Jennifer Pepin, Nineveh Alkhas, Jason Cruise, Joshua Marnitz, Peter Todaro, Tomas Nilsson, and Robin Hulshizer of Latham & Watkins LLP acted as the legal advisor to CPP Investments and OMERS Infrastructure. Adam Cieply of White & Case LLP acted as the legal advisor to Atlas Arteria.

Atlas Arteria Limited (ASX:ALX) completed the acquisition of 66.67% stake in Skyway Concession Company, LLC from CPP Investments and OMERS Infrastructure on December 2, 2022. Ontario Teachers' Pension Plan will continue to hold its 33.33% interest in Chicago Skyway.