Project

WestConnex Remaining Equity Sell Down

PROJECT STATUS
Under Procurement
WestConnex Remaining Equity Sell Down

In August 2018, the NSW Government awarded Sydney Transport Partners (STP) consortium a 51 per cent ownership stake in Sydney Motorway Corporation (SMC), which was the NSW Government-owned entity established to deliver WestConnex. 

The NSW Government has confirmed it will proceed with the sale of its remaining 49 per cent stake in the WestConnex motorway. 

The sale has been split in two Tranches, with the stated aim of delivering a more competitive process. Following an ROI and EOI process, both Tranches of 24.5 per cent equity will run parallel Right of First Offer and competitive processes for formal bids. Tranche One will enter a formal bid process in Q2 2021, with the processes for Tranche Two to follow. The sale of both tranches are expected to reach close by the end of September 2021. 

Under the terms of their acquisition of the first 51 per cent stake back in 2018, STP has the right of first offer for any of the remaining 49 per cent and will be able to submit an offer for Tranche One alongside other bidders. A capital commitment fee will be offered by the NSW Government to compensate the underbidder in Tranche One for participating in the transaction and funding a binding bid. This will be subject to conditions, including regulatory approvals. 

Key Dates

Nov 2020 Project Announcement
Jan 2021 ROIs Open
Jun 2021 RFT Close
Sep 2021 Expected Contract Award

Procurement

Procuring Agency: NSW Treasury
Adviser (Govt): Citi & RBC Capital Markets (Joint Financial Advisers) Allens (Legal Adviser) PwC (Accounting & Tax, Traffic, Economic Adviser) Jacobs (Technical Adviser) Environmental Resources Management (Environmental Adviser) Newgate (Communications) O'Connor Marsden (Probity)

PROJECT HISTORY

Aug 2018 The NSW Government awarded Sydney Transport Partners (STP) consortium a 51 per cent ownership stake in Sydney Motorway Corporation (SMC), which was the NSW Government-owned entity established to deliver WestConnex. The transaction delivered $9.3 billion in revenue for the Government, of which $7 billion was used as seed funding for the NSW Generations Fund (NGF), the state’s sovereign wealth fund.
Mar 2020 The NSW Government announced a scoping study to assess the future ownership of the State's remaining 49 per cent ownership in WestConnex. The study would examine whether retaining the Government’s current stake, or raising further capital for new infrastructure funding through divestment of its WestConnex equity, would be more beneficial.
Nov 2020 The NSW Government confirmed it will proceed with the transaction of its remaining 49 per cent stake in the WestConnex motorway following the completion of the scoping study.
Nov 2020 The NSW Government commenced the two-tranche divestment process for its remaining 49 per cent stake. The sale has been split in two with the stated aim of delivering a more competitive process. The Registration of Interest process for Tranche 1, representing a 24.5 per cent stake, opened in late November and will be followed by an Expression of Interest phase. The formal procurement process is expected to begin in the second quarter of 2021.
Sector
Road
Procurement approach
Privatisation |
Location
New South Wales |
Resources