Ann: ACCC will not oppose Transurban consortium WestConnex bid, page-4

As you may or may not remember from my earlier posts, I think this purchase will add to TCL’s dominance in toll roads, and add a bit more depth to their moat. Personally I am not worried about the execution risk because they have done this successfully many times before, or the extra debt, though your points are noted.

@F01

Yes, I do remember our previous conversation and I don’t blame you at all.

But, I personally had 10% of my total investable capital allocated into TCL, and with this deal now likely to go through I felt it was just too much, at current price and given the increasing execution risk (plus I found the economics of the acquisition in Canada unconvincing, as well as the way the CFO tried to justify it to investors).

I read in the AFR that they will need a 3 billion CR. Back of the envelope calculations suggests an entitlement offer of around 1:8-9 @ say 11.50. Of which personally I would take up the full amount.

That doesn’t sound unreasonable. Before deciding whether I would take up the entitlement offer, I would want to see the full details of the deal, though; at first sight, it doesn’t exactly look like a no-brainer to me.

On the upside, Mrs Market agrees with me (today anyway) and as the SP has rallied, if you are looking to decrease your holding, you can do so at a better price.

Yep, done. With many thanks to Mr (or Mrs) Market for agreeing with you on this one

Cheers