AUSTRALIA: Existing shareholders Macquarie Infrastructure & Real Assets and PGGM have agreed to assume full ownership of the Genesee & Wyoming Australia business.
This announcement on August 6 follows an agreement for GWA’s parent company Genesee & Wyoming Inc to be acquired by Brookfield Infrastructure and GIC in a transaction which is expected to close by early 2020. As part of this, Brookfield Infrastructure and GIC announced their intention to divest G&W’s stake in GWA.
Funds managed by MIRA and PGGM acquired a 49% equity stake in GWA in 2016. Maintaining ownership of the business amongst the existing shareholders is expected to enable ongoing operation of GWA in line with its current strategy.
The transaction is to be funded by equity provided by PGGM, which will significantly increase its stake, with MIRA-managed funds owning the remaining stake under joint governance arrangements.
The transaction is subject to G&W’s acquisition by Brookfield Infrastructure and GIC, as well as customary closing conditions including regulatory approvals.