Transurban : Sells Stake in Chesapeake Assets for $2.1 Billion Gross Proceeds

By David Winning

SYDNEY--Transurban Group said it will sell a 50% stake in several North American toll roads to a consortium of pension funds for gross proceeds of 2.8 billion Australian dollars (US$2.1 billion).

Transurban named the buyers of the Transurban Chesapeake assets as AustralianSuper, Canada Pension Plan Investment Board and UniSuper. The deal also includes a potential earn-out between fiscal 2024 and fiscal 2026 of up to A$93 million, the company said.

The transaction involves Transurban's operational assets in the Greater Washington Area, such as the 495 Express Lanes, 95 Express Lanes and 395 Express Lanes. It also includes three projects--the Fredericksburg Extension, 495 Express Lanes Northern Extension and the Capital Beltway Accord--that are being developed.

"This transaction realizes significant value for security holders while enabling accelerated growth in North America and Australia, where we see a number of opportunities starting to materialise," said Chief Executive Scott Charlton.

Write to David Winning at [e-mail]

(END) Dow Jones Newswires

12-16-20 1806ET