CPE News (9.12.2022) – Atlas Arteria Limited (ASX: ALX) has entered into an agreement to acquire a 66.67% majority interest Skyway Concession Company LLC, 33.33% each from Canada Pension Plan Investment Board (CPP Investments) and OMERS Infrastructure.
The acquisition of the 66.67% majority interest represents an equity value of US $2,013 million and is subject to receipt of regulatory approvals including consent of the City of Chicago.
Ontario Teachers’ Pension Plan is retaining its 33.33% interest in Chicago Skyway.
Skyway Concession Company manages, operates and maintains the Chicago Skyway toll road under a 99-year concession agreement. Chicago Skyway is a 7.8-mile (12.5 kilometer) toll road that forms a critical link between downtown Chicago and its south-eastern suburbs. As an essential part of the Chicago road network, it delivers reliability and time savings for its users in one of the busiest corridors in the United States.
In 2016, CPP Investments, OMERS and Ontario Teachers’ consortium acquired Skyway Concession Company for US $2.8 billion with CPPIB, OMERS and Ontario Teachers’ each owning a 33.33% interest in SCC and contribute an equity investment of approximately US $512 million each.
CPP Investments, OMERS each will receive US $1,007 million, almost 2x (1.97x) of their investment costs.
photo credit: Skyway Concession Company
News Release
Acquisition of Majority Interest in Chicago Skyway
Atlas Arteria (ASX:ALX) announces that it has entered into an agreement to acquire a 66.67% majority interest in the Chicago Skyway, a 12.5km toll road with 81 years of remaining concession life that provides congestion relief in an essential transportation corridor. The acquisition establishes a partnership with Ontario Teachers’ Pension Plan, which is retaining its 33.33% interest in Chicago Skyway.
The acquisition of the 66.67% majority interest represents an equity value of US$2,013 million and is subject to receipt of regulatory approvals including consent of the City of Chicago.
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. 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 details of the equity raising are being finalised and further details on the acquisition and equity raising will be provided in due course.
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For further information please contact:
Investors: Media:
Tess Palmer Lisa Keenan
Director, Investor Relations Nightingale Advisors
+61 (0) 438 493 692 +61 (0) 409 150 771
investors@atlasarteria.com lisa@nightingaleadvisors.com.au
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This announcement has been authorised for release by the Boards of Atlas Arteria International Limited and Atlas Arteria Limited.
About Atlas Arteria
Atlas Arteria (ASX:ALX) is a global owner, operator and developer of toll roads, creating value for our investors over the long-term through considered and disciplined management. The roads we own, operate and develop benefit communities through reduced travel time, greater time certainty, reduced fuel consumption and carbon emissions.
Today the Atlas Arteria Group consists of four businesses. We currently own a 31.14% interest in the APRR toll road group in France. Adjacent to the APRR business is the smaller ADELAC business which connects to APRR in south-east France. Together APRR and ADELAC comprise a 2,406km motorway network located in the East and South East of France. In the US, we have 100% of the economic interest in the Dulles Greenway, a 22km toll road in the Commonwealth of Virginia. In Germany, we own 100% of the Warnow Tunnel in the north-east city of Rostock.