Reports Macquarie explores divesting pikes

British newspapers report that Macquarie are hawking their premier pike in England, the M6Toll in Birmingham. Sunday Times' reporters say they've been told by various industry sources that Macquarie representatives have been offering M6Toll and various other concession assets.

M6Toll was seriously written down in value by Macquarie int heir most recent fianncial report.

Macquarie Infrastructure Group recently sold its 50% interest in West Sydney Roads Group operator of M7 Westlink in Sydney for A$402m.  It has also sold its 30% share in Lusoponte which operates major toll bridges in Lisbon Portugal, netting A$227m. A$ is approx US70c.

The group also says it has just over a billion dollars in cash so is under no liquidity pressure to sell assets.

CEO John Hughes says the divestments are in response to low fund valuations and the signal they convey that investors want higher yields.

M6Toll a 43km tollroad bypass of Birmingham, Britain's second largest metro area is valued at A$1201m, a 46% downvaluation on last year's reported value of A$2188m.  That makes it 17% of the MIG portfolio.

M6Toll has suffered declining traffic in the past couple of years and static revenues.

TOLLROADSnews 2009-03-09