Toll roads operator Transurban Group (ASX:TCL) is reported to be keeping a close eye on Queensland Motorways, (QML) for a possible acquisition bid. The company is reportedly joining hands with Australian Super for the buying of QML.
The two acquiring companies have not yet disclosed their positions since the reports about the bid started emerging strongly early this month.
QML is managed by Queensland Investment Corporation (QIC) which early this month wrapped two weeks of global road show. It is understandable as to why the successful toll roads operator Transurban Group (ASX:TCL) is interested in QML. The business owns five toll roads in Brisbane which include Legacy Way, ClemJones Tunnel and Go Between Bridge. The business has an estimated annual earning of $300 million and its assets are valued at billions of dollars.
This strong and wide business network and infrastructure will be an added advantage to the operations of Transurban Group (ASX:TCL) and its partner Australian Super.
It is pertinent to recall that way back in 2011, QML was privatized, its operations shifted into the hands of a benefit pension fund and is currently managed by QIC.
It is QIC that is now spearheading the sale of the business. It is reported that the managing firm has hired UBS and Macquarie Capital to advice on the sale of QML. And expression of interest (EOI) from bidders already started pouring in this month. If everything goes as per their plans Transurban Group and Australian Super who are among the interested bidders could seal the deal by April 2014.
Besides Australian Super, Transurban Group (ASX:TCL) could also get a joint bid suitor in Canadian pension funds towards the acquisition of the asset rich QML.
Transurban Group (ASX:TCL) is a successful toll roads operator with a market value of $10.36 billion on the ASX scale. It has about 1.5 billion shares and each share is currently trading at an average of $6.99. The net profit of the company in the fiscal 2013 is around $175 million.
