News: TCL UPDATE 1-Australia's Transurban Group to raise $1.43 bln to fund West Gate Tunnel Project

(Adds details on contract, trading halt of shares and distribution guidance)

Dec 12 (Reuters) - Transurban Group Ltd (TCL) said on Tuesday it would raise about A$1.9 billion ($1.43 billion) through an equity offer to fund its West Gate Tunnel Project.

The company said in a statement it would carry out the capital raising at an offer price of A$11.40 per new security in a three for 37 entitlement offer.

The company added that it had closed the contract with the Victorian State Government to build, toll and operate the West Gate Tunnel Project till 2045.

The toll road developer had said earlier in the year that Cimic Group's (CIM) construction arm CPB Contractors and infrastructure developer John Holland had been selected as the preferred constructors for the West Gate Tunnel Project. [nASX7gsqVz]

Cimic said in a separate statement that the contract would generate revenue for CPB of about A$2.49 billion.

The West Gate Tunnel Project is a government initiative to relieve traffic congestion in Melbourne.

Transurban said that the total costs of the project would be about A$5.5 billion, of which the company would contribute A$4.0 billion with the rest to be borne by the state.

Trading in the shares of the company will be halted till the completion of the equity raising.

The company also reaffirmed its distribution guidance of of 56.0 cents per share for fiscal 2018. ($1 = 1.3287 Australian dollars)