interesting note in afr today about infra fund, page-4

i dont think it will be a bidding war.

i think Macquarie will go to the management at MIG, CEU and TCL and try and buy various assets from them.

imagine if the new wholesale fund was able to buy Citylink from TCL for its actual book value, Eastlink from CEU and the Chicago Skyway from MIG?

It would own a combination of greenfield and mature toll roads that the big pension funds could buy a part of. no worries about share price volatility etc, just buy and hold for exposure to the actual asset not all the noise that goes with owning listed assets.

its also coincidental that TCL decides not to takeover CEU less than 3 weeks after the draft consitution changes from CEU.

no, i dont think there will be a bidding war for CEU unless one of the sovereign funds decides that want it. i cant see TCL trying again unless something else happens.

but dont be surprised to see MIG sell a few assets into the new unlisted infra fund, when that happens the whole sector will be re-rated.