Future Fund May Join Canada Funds’ Transurban Bid

According to Bloomberg, “Australia’s sovereign wealth fund said it may join two Canadian pension funds in a A$6.8 billion ($6.2 billion) bid for toll-road owner Transurban Group after an initial offer was rejected five weeks ago. The A$64.3 billion Future Fund is in talks with Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan, the Australian fund said today in a statement. Australia’s biggest toll-road company rejected an A$5.25 offer on Nov. 5, which was 20 percent higher than the previous closing price.

Canada Pension and Ontario Teachers, with almost $200 billion of assets, already own a combined 28 percent of Transurban, according to Bloomberg data. Even with the Future Fund’s potential backing, a higher offer may be needed to win support from Transurban, which owns toll roads including the Pocahontas 895 in Virginia and the Hills M2 in New South Wales.

“It gives more firepower to the bid,” said Andrew Chambers, an analyst at Austock Group Ltd. in Melbourne with a “buy” rating on Transurban. “We wouldn’t be telling people to accept a bid of A$5.25, regardless of who’s offering it.”

No commitment or understanding has yet been reached by the Future Fund with the Canadian funds, and discussions are preliminary, Will Hetherton, head of public affairs at the fund, said in the statement.”

read more: Bloomberg

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