Australian Toll Road Operator Seeks $2 Billion Share of Chicago Freeway

Australian toll road operator Atlas Arteria (ASX:ALX) announced on Tuesday that it has reached an agreement to acquire a majority stake in a Chicago-based toll road for an equity value of $2.01 billion.

The firm said it had struck a deal with Ontario Teachers' Pension Plan, one of the world's largest pension plan operators, to acquire a 66.67 majority stake in the toll road. The Ontario-based pension plan owner will retain a 33.33% stake in the road. The road in question is the Chicago Skyway, and the 12.5-kilometer toll road in the city has 81 years of concession life remaining, Atlas (NYSE:ATCO) said in a statement. The deal is still subject to regulatory approval, including approval by the city of Chicago, and will be funded through an equity raise. The move comes just months after the Ontario Teachers' Pension Plan opened bids for its stake in the airline, which it owns jointly with a unit of another Canadian pension fund, the Ontario Municipal Employees' Retirement System. Bloomberg had previously reported that the pair valued the Skyway lease at at least $4 billion. Skyway generated $114.3 million in toll revenue in 2021, according to a recent audit by Deloitte. Atlas initially held a 22% stake in the toll road, which it sold to two pension companies in 2015. One of the world's largest toll road operators, it has roads in France, Germany and the US. The firm was previously owned by Australian investment giant Macquarie Group Ltd (ASX:MQG), but has severed ties with the bank over the past decade. In late August, Atlas reported a 25% increase in toll road revenue for the first six months of the year, as a recovery in traffic was seen as COVID-19 restrictions were eased around the world. The company also announced a record annual dividend of 40 cents. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!