Insights

Transurban (ASX:TCL) share price slides as WestConnex bid day arrives

Transurban shares slide amid more developments in the WestConnex saga.
The post Transurban (ASX:TCL) share price slides as WestConnex bid day arrives appeared first on The Motley Fool Australia. –

The Transurban Group Ltd (ASX: TCL) share price has spent all day in the red on Thursday.

Shares in the ASX toll road operator are slipping as offers are set to land for the remaining stakes in the WestConnex motorway project today. At the time of writing, the Transurban share price is down 2.9%, trading at $14.08.

Let’s investigate further.

What led us to this point?

Investors have been watching the Transurban share price closely this week as the company attempts to capture the remaining stake in the WestConnex project.

There are two stakes up for grabs in upcoming auctions for the project – both 24.5% each. The first bids are due today, with Transurban seeking to participate in both.

According to reports from yesterday’s Australian Financial Review (AFR), it appears the NSW state is “likely to take a week or so reviewing the bids”, before running “a quick auction for the second stake”.

Transurban is participating in the auction through its consortium, Sydney Transport Partners (STP) which already owns the remaining 51% stake of WestConnex.

Earlier this week, reports surfaced that rival bidders IFM investors may have pulled out of the running race for the bid, leaving Transurban in a prime position to nab the remaining stakes.

Macquarie Bank has weighed in on the debate and foresees Transurban raising around $4 billion in capital to fund the transactions. The total investment could reach up to $10 billion if STP wins both bids, according to the AFR.

What does this mean for the Transurban share price?

The Transurban share price has had a difficult year to date, posting a gain of only 3.4% since January 1.

Transurban shares are also only up by around 3% over the past 12 months, due to pressures on its business from the spate of COVID-related lockdowns in Australia and overseas.

In comparison, the S&P/ASX 200 index (ASX: XJO) has climbed around 25% over this same time.

However, Transurban’s entry into this race, as a bidder with a successful track record in these types of auctions, means “investors may finally have a reason to get excited about the Transurban share price”, as my Fool colleague Brendon eloquently put it on Tuesday.

Given the likely need for a capital raise to finance the bids, the company may seek an institutional placement with its “nearest and dearest” or play it through a rights issue, according to the company.

It’s likely that the outcome of Transurban’s bid in the WestConnex project will weigh in on its share price in some fashion.

The post Transurban (ASX:TCL) share price slides as WestConnex bid day arrives appeared first on The Motley Fool Australia.

Should you invest $1,000 in Transurban Group right now?

Before you consider Transurban Group, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Transurban Group wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

2 buy-rated ASX dividend shares with attractive yields

Transurban (ASX:TCL) share price could get boost from WestConnex rumour
Top broker says Transurban (ASX:TCL) share price is a buy
Transurban (ASX:TCL) share price wobbles as CEO calls for road-user reforms
2 top ASX dividend shares rated as buys this month

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!