Transurban

Transurban Shareholders Revolt Against Management Pay


Transurban (ASX:TCL) shareholders are protesting over the pay for its senior executives after being incited by an adviser to the company’s investors. For the first time, shareholders are able to force non-executive directors to face re-election if 25 percent vote against executive pay consecutively for two years.

The toll road operator is on its fourth year of protest against pay packages, and more than 50 percent of shareholders voted against the company’s remuneration report last year.

Transurban Profits


Australian toll road operator Transurban (ASX:TCL), have reported a net profit of $59.4 million for the financial year. An improvement on a loss of $24.6 million from the previous year.

Transurban Dividends

Transurban Dividends

9 August, 2010 - 23:03

Study the historical dividends for TRANSURBAN GROUP. Dividends are a portion of company profits paid out to shareholders. You are eligible to receive TCL dividends if you own the company's stock on the ex-dividend date. Investor's must have purchased the stock before the ex dividend date to be entitled to the dividend. The previous owner of the shares will receive the TCL dividend if you buy the stocks on or after the ex dividend date. The Pay Date or the Date Payable is the day when the dividend is paid to shareholders.

Transurban will Not Buy Further Stakes in Westlink M7


Transurban Group (TCL) has announced that it will not exercise its right to acquire Macquarie Infrastructure Group's (MIG) 50% stake in the Westlink M7 toll road. The company said acquiring additional stake in the toll road would not give further value to its shareholders.In Last December, MIG said, that it is going to sell the 50% stakes in Westlink M7 to Western Sydney Road group (WSRG) for $805 million.

Transurban (TCL) Update


Transurban (TCL) has a share price target of $7.10 from Australian stockmarket analyst Macquarie Research Equities.

Transurban (TCL) The case for cutting distributions

Market already seems to be pricing the likelihood of a cut to distributions:

At $5.48, TCL is trading on an FY08E OpCF yield of ~4.4% & growth of 7.3% pa to FY20E (total return ~11.7% pa). This compares to an FY08E distribution yield of ~10.4% & growth of ~1.6% pa to FY20E (total return ~12.0%) on current profile.

Market no longer rewarding TCL for its re-gearing strategy:

Transurban Update


Transurban shares have a retained Hold, Medium Risk broker call and a higher price target of $7.83 from sharemarket analyst Citi Investment Research. Potential Takeover Valuation of $10.56ps, the analyst's looks at market's 'sentiment' cycle valuation of Transurban with top-cycle valuation of $9.34ps and low-cycle assessment of $7.35ps. Analyst has lifted their target price and align it with the mid-cycle valuation of $7.83ps (from $7.30ps). They believe that the takeover valuation of Transurban could be as high as $10.56ps. Nonetheless they retain a Hold/Medium Risk rating for the time being. Billions of dollars are being raised globally with dedicated mandate to invest in the infrastructure sector. With limited asset supply, the analyst's believe the attraction of an independent company with no management fee leakage, growth potential, and proven management looks obvious. Transurban fits the bill and could be vulnerable to moves by private equity investors. Transurban's balance sheet alone has the flexibility to take on additional $960m of debt. Together with observed equity betas of 0.55 and option value in the existing assets, a top-cycle valuation of $9.34ps does not look demanding. With no takeover offer on the table, the analysts see no immediate catalyst to unlock the balance sheet potential. While some of the option value and lower risk premium benefits are trickling through the share price, the analyst's are only prepared to ascribe value to what is in hand and in sight – mid cycle valuation of $7.83ps. Earnings Adjustment: As a result of successful acquisition of SRG, their earnings for Transurban have been adjusted upwards by between 5-19%.

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