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Highlights:
- Toll roads operator, Atlas Arteria has confirmed participation in sales process of Chicago Skyway toll roads.
- Chicago Skywalk is an elevated toll road that connects Day Ryan Expressway in Chicago to Indiana Toll Road at the Indiana border.
- Further comments on the transaction are expected when the deal is finalised or ceased.
ASX-listed transportation company, Atlas Arteria (ASX:ALX) on Monday (12 September 2022) confirmed that it is participating in the Chicago Skyway toll road sales process.
Atlas Arteria shares were spotted trading 0.877% lower at AU$7.910 per share at 10:30 AM AEST.
Atlas Arteria participates in Chicago Skyway sales process
Via today’s ASX announcement, Atlas Arteria stated that it regularly assesses the strategic options and growth opportunities available. This might be the reason that the company is participating in the sales process of Chicago Skyway.
The company added that there is no certainty that the transaction would take place.
As per today’s release, the company would make further comments on the transaction when either it ceases its participation, or the outcome is known.
Everything you need to know about Chicago Skyway
It is a 12.6-kilometre road which was built in the 1950s. Back in 2005, it was privatised by the City of Chicago. Presently it has three owners, namely, OMERS Infrastructure, Canada Pension Plan Investment Board and Ontario Teacher’s Pension Plan, who bought the Skyway in 2016.
Reportedly, two out of three owners are looking forward to selling their 67% stake in the toll road by auction.
According to a media source, the expected earnings of the road are approximately US$100 million annually, and the deal value can be around US$4 billion.
Worth mentioning here is that Chicago Skyway is not new for Atlas Arteria, as it owned 22.5% interest in the toll road before selling it to Canadian funds in 2015.
Does Atlas Arteria have enough cash to buy a stake in Chicago Skyway?
Recently, the group shared its half-yearly (1HFY22) report for the period ending on 30 June 2022. As of 30 June, the company had a cash balance of AU$131.7 million. It seems like the company will require raising additional funds if it buys a stake in the Chicago Skyway toll road independently.
Worth mentioning here is that the company posted 184.2% growth in its net profit after tax and 57.7% growth in distributions in 1HFY22.
About Atlas Arteria
Atlas Arteria globally owns, operates and develops toll roads. The company claims that the road it manages, benefits the communities via reducing fuel consumption, travel time, and carbon emissions and increasing time certainty.
The group comprises four businesses. It has 31.14% interest in the APRR toll road group, France. The group have an interest in the ADELAC business, which is adjacent to APRR. The company have 100% economic interest in the Dulles Greenway, located in the Commonwealth of Virginia. In Germany, it has 100% interest in Warnow Tunnel, located in Rostock.
