France’s Vinci test drives banks for EastLink tilt; Transurban digs in
Paris-headquartered concessions player Vinci Group has begun meeting with investment banks for a potential buy-side mandate, as it weighs a tilt at Melbourne’s EastLink motorway.
Sources said Vinci has held talks with a handful of infrastructure advisory units this week, suggesting it is not just kicking tyres at EastLink. Of note, Vinci wouldn’t have a big list of bankers to shop from, given several of them are saddled to Transurban.
Owners of EastLink will collect first-round bids in late November.
It is understood the ASX-listed toll roads giant still hasn’t released its advisory lineup – Macquarie Capital, Morgan Stanley, Barrenjoey and Azure Capital – from their mandates.
That’s despite the Australian Competition and Consumer Commission opposing its proposed bid on September 21, and despite Transurban not having appealed the decision so far. Its chairman Craig Drummond was asked about the matter at its annual general meeting just last week, and said Transurban was “working feverishly” to decide whether to appeal.
As this column has previously reported, Citi and JPMorgan have signed up to work for Spanish toll roads giant Abertis Infraestructuras, while Lazard is tending to Queensland Investment Corporation (QIC).
All eyes are on Atlas Arteria, which ruled out a bid in the past, which is battling France’s new motorway tax like Vinci, and is just a year out from a chunky acquisition.
Yet, it is seen as a logical bidder, and tapped UBS and RBC Capital Markets for its $3 billion acquisition of Chicago Skyway just last year. IFM Investors and DIF Capital Partners have also been thrown around as parties for whom it would make sense to look at the EastLink stake.
With the way things stand at Transurban, there’s only four
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