Shares of Transurban have been holding above the $12.00 mark since the ACCC approved the company’s bid on Sydney’s WestConnex tollway. Shares are currently in a trading halt.
The green light from the regulator clears the way for TCL to acquire other domestic assets to build on its future growth in earnings.
TCL currently own 15 of the 19 toll roads in Australia. This gives TCL an advantage over other bidders since many tollways feed into other strategic motorways.
The company plans to do a capital raising for $4.8 billion to fund the acquisition. $4.2 billion of this will be in the form of offering shares at $10.80.
We don’t have a current ALGO buy signal on TCL and would look for lower levels to enter long.