macquarie infrastructure sells westlink m7 int

SYDNEY (Dow Jones)--Tollroad investor Macquarie Infrastructure Group (MIG.AU) said Monday it agreed to sell its 50% stake in Sydney's Westlink M7 for A$805 million into a joint venture vehicle in which it holds a 50% stake.

In a statement, MIG said it has accepted a binding offer for the stake from the Western Sydney Roads Group, or WSRG, which it owns equally with an unnamed Australian institutional investment manager.

MIG's Chief Executive John Hughes said the sale will generate net proceeds for MIG of A$402.5 million at an internal rate of return of 25.9%.

The firm is also in discussions to sell its 50% stake in WSRG to third-party investors, but said any selldown will be subject to the preemptive rights of both the other 50% owner of the road, Melbourne-based tollroad operator Transurban Group (TCL.AU), and its partner in WSRG.

Completion of the sale is subject to conditions including approval from the New South Wales Road & Traffic Authority and the road's lenders. After the sale and completion of the sale of Portuguese bridge owner Lusoponte, MIG said it will have cash balances of more than A$1.2 billion.