Intoll Group endorses A$3.4 billion takeover from Canada Pension Plan

The board of Australian toll-road operator Intoll Group yesterday recommended the revised A$3.4 billion ($3.1 billion) takeover offer from the investment arm of Canada Pension Plan Investment Board (CPPIB).

Intoll, formerly Macquarie Infrastructure Group, recommended CPPIB's A$1.52 for each Intoll share, about 2.5 cents more than the pension fund's initial proposal on 15 July 2010, valuing Intoll at A$3.4 billion. (See: Canada Pension offers A$3.47-billion for Australian toll-road operator Intoll) 

CPPIB's 15 July offer was for A$1.535 per Intoll share, comprising of a combination of Australian and Canadian dollars, so the deal was based on the exchange rates at that time.

The revised offer from CPPIB is only in Australian dollars and fixed, making the deal not dependent on exchange rate fluctuations.

The deal gives Canada's second-biggest pension manager a 30-per cent interest in the 407 ETR (toll road) in Toronto, Canada and 25 per cent in Westlink M7 in Sydney, Australia, with the majority of Intoll's revenue coming from Toronto 407 ETR.

"The directors of Intoll have carefully considered the Proposal and unanimously recommend that Intoll security holders approve the Schemes of Arrangement and elect to receive the cash proposal in the absence of a superior offer and subject to an independent expert concluding that the schemes of arrangement are fair and reasonable and in the best interests of security holders," said Paul McClintock, chairman of Intoll.