HILLS M2 ACQUISITION & INTEGRATION

The acquisition delivered substantial value for all investors. Integration synergies and cost savings exceeded. Traffic uplift outperformed with the accelerated delivery of free flow tolling. 

PROJECT DETAILS

  • Value: A$2.2 B

  • ASX Acquisiton takeover

  • Parties: Hills Motorway Ltd & Transurban Ltd

  • Operator: Transurban

  • Status: Acquired & Integrated

PROJECT DESCRIPTION

  • takeover offer of Hills was 1.47 Transurban securities  and a cash component of 25 cents for each Hills security.

  • acquired the incumbent operator TollAust Pty Ltd 

  • exceeded annual business case synergies and savings of $6 M p.a.

  • a full freeway link, two lanes in each direction between Seven Hills and North Ryde with a dedicated bus lane and 400m twin tunnels underneath Norfolk Road in North Epping

PROJECT BENEFITS

  • free flow multi lane tolling implemented within 6 months to align with opening of WestLink M7 providing significantly improved traffic flow

  • improved safety and travel times with removal of toll booths

  • the merger of Transurban and Hills enabled a further increase in forecast distributions to investor as both companies had under-geared balance sheets

  • maintained conservative debt covenants and an A-rating on senior debt

KEY SERVICES PROVIDED

  • technical due diligence, operating and life cycle costs analysis 

  • free flow conversion design development

  • leadership of integration team including commercial, legal, operations

  • stakeholder and RTA approvals management for free flow conversion

  • leadership, commercial and legal negotiations of Operator acquisition 

  • consultant team & disciplinary oversight

  • Executive, Board and investor reports and updates

 

Business commencing August 2020

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