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Australian Firm Takes $2B Stake in Chicago Skyway
Toll road operator Atlas Arteria has entered into an agreement to acquire a 66.67% majority interest in the Chicago Skyway, in a deal valued at approximately US$2 billion. The acquisition establishes a partnership with Ontario Teachers’ Pension Plan, which is retaining its 33.33% interest in the 7.8-mile Chicago Skyway.
Built in 1958 by the City of Chicago, the Skyway was operated by the city until 2005, when Skyway Concession Co. assumed a 99-year lease. Ontario Teachers, Canada Pension Plan Investment Board and OMERS acquired the lease in 2016, with each pension plan taking a 33.33% stake.
Bloomberg News reported that IFM Investors, the biggest shareholder in Sydney-based Atlas Arteria, opposed the deal, on grounds that it could be “dilutive to distribution” and said it would consider “all legal options” to halt the deal. The acquisition is subject to regulatory approvals, including a sign-off by the City of Chicago.
- ◦Sale/Acquisition
