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.
Value: A$2.2 B
ASX Acquisiton takeover
Parties: Hills Motorway Ltd & Transurban Ltd
Status: Acquired & Integrated
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
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