Is It A Bird? Is It A Train?

Is it a bird? Is it a train? No, it's the Universities Superannuation Scheme Limited, one of the largest pension schemes in the United Kingdom, announcing that its USS Axle Pty subsidiary, has successfully completed the acquisition of the Brisbane Airtrain.

The transaction was arranged by USS Investment Management, USS’s principal investment manager and adviser which will manage the investment on its behalf.

Following a period of exclusivity in December, Airtrain Holdings Limited entered into a binding agreement with USS Axle for the sale of the company for approximately A$110 million in cash on December 21 2012. 

The transaction was implemented by way of a scheme of arrangement under which USS Axle has acquired the entire issued share capital of Airtrain Holdings Limited, the parent company of Brisbane Airtrain.  CP2 Limited has co-invested 1% of the total consideration and will be retained by USS in an asset management role.

The completion of the transaction follows the satisfaction of a number of conditions precedent including approvals from the Queensland Department of Transport, the Foreign Investment Review Board as well as approval by the requisite majorities of Airtrain Holdings’ shareholders (Why on earth does Australia remain so suspicious of foreign investment? We in the UK have found that it adds enormously to the gaeity of the nation to have your leading football clubs owned by a series of multi-billionaires who might struggle to pass a fit and proper person test carried out by Genghis Khan, and to have your power generation and distribution companies owned by foreigners who delight in fleecing the UK customer base in a way that seems to be actively encouraged by government).

USS says it has made a number of investments in Australia over recent years including the take private of ConnectEast, which operates the EastLink toll road in Melbourne and the Airport Link rail company in Sydney.   

Gavin Merchant, senior investment manager infrastructure at USSIM, commented, “Brisbane Airtrain is a key piece of transport infrastructure that supports the strong growth of Brisbane and South East Queensland.  As a Director on the Board I look forward to working closely with the outstanding Airtrain management team, its contractual partners and all stakeholders to continue the high levels of safety and performance and to grow passenger numbers.”

Rob Horsnall, investment manager infrastructure at USSIM, added, “USS’s ability to all equity fund the transaction, without the need for external funding  allowed us to agree and execute the acquisition of Brisbane Airtrain quickly and efficiently.”

USS was advised by CP2 Limited and Johnson, Winter & Slattery. Airtrain was advised by Rothschild and King & Wood Mallesons.