In a very logical move, toll road goliath Transurban (TCL) was in a trading halt yesterday launching an equity raise for a whopping $3.97b – the biggest on the ASX for 3 years, to purchase, along with its 3 partners the remaining 49% they didn’t own of the tunnel network Westconnex for $33b. The deal is structured with existing shareholders in mind via a 1 for 9 rights issue at $13 which is an 8.3% discount to the last close. The deal further strengthens TCL’s foothold in Sydney. We own TCL in the Income Portfolio and we had an inclination this deal would play out. We intend to take up our rights unless something dramatic changes in the meantime.
MM remains bullish TCL
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