QUEENSLAND MOTORWAYS SALE NETS $7B

QUEENSLAND MOTORWAYS SALE NETS $7B

QIC Limited has confirmed the sale of tollway operator Queensland Motorways to Transurban Group (ASX:TCL) for $7.057 billion.

Transurban has been placed in a trading halt until May 1 following the announcement, with the deal expected to be completed by the third quarter.

CEO Damian Frawley says the return on investment indicates the high quality of QIC’s services and people.

Net proceeds from the sale will remain in the Defined Benefit Fund, which provides superannuation to current public servants.

Frawley says the successors have a long established track record maintaining similar operations.

Transurban CEO Scott Charlton says the acquisition is a result of months of detailed analysis and is consistent with the company’s growth strategy.

“As an operator we have a unique ability to integrate and unlock value from our networks utilising our core capabilities,” he says.

Tolls are unlikely to be impacted, as they are regulated by franchise agreements with state government and council.

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