So what’s going to happen to the mooted bid for Transurban, the country’s biggest tollroad operator, now that the Future Fund has walked away from any involvement?
The Fund yesterday revealed it had ended talks with two Canadian pension funds for their $6.8 billion bid for Transurban.
That saw Transurban (TCL) shares lose 5% to around $4.84, before recovering to close down just 10c at $5.05.
In fact the way the Future Fund made the announcement and the TCL statement raised more questions that they answered.
Transurban said it had been in talks recently with the two Canadian funds, but said no more.
"The Future Fund board of guardians today advised that it has terminated discussions with the Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers Pension Plan (OTTP) regarding their proposal to acquire Transurban Group," the Future Fund said in a statement yesterday.
The Future Fund gave no reason for its withdrawal.
And ASX or ASIC query might be in order to all three groups to get more disclosure.
Transurban acknowledged the Future Fund’s announcement.
"Transurban confirms that confidential discussions took place between Transurban and CPPIB and OTTP during the week commencing 15 March, 2010," Transurban said in a statement to the ASX.
"To date, no further proposal has been received from CPPIB and OTTP."
The two Canadian pension funds made an indicative takeover offer for Transurban in October of last year.
The Future Fund announced in December that it was talking to the Canadian Funds about supporting their proposal.
The pension funds have offered to acquire all of Transurban’s stapled securities, offering securityholders a choice of $5.25 in cash for each security, an unlisted scrip rollover and top-up alternative, or a combination of both.
Transurban rejected the proposal, saying the offer undervalued its assets.
That was restated at last month’s interim profit report by Transurban directors.
Since December there has been little movement or sign from the Future Fund and the Canadians about the bid.
Yesterday’s statements were the first advances since December.
Transurban owns toll roads in Australia and the US, including the Hills M2 in NSW, CityLink in Melbourne and the Pocahontas 895 toll road in Virginia. It has a half share in the M7 around Sydney, which is one of its best assets.
The $66.2 billion Future Fund said in a statement today it ended talks with Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan, without disclosing a reason.
Australia’s biggest toll-road company rejected a $5.25-a-share offer from the Canadian funds on November 5, which was 20% higher than the previous closing price.
Canada Pension and Ontario Teachers’ already own a combined 28% of Transurban, which gives them a position of power, but so far not the will to complete the deal.
