Transurban Says It Wants to Buy Stake in Melbourne’s EastLink

Angus Whitley, Bloomberg News

MELBOURNE, AUSTRALIA - JUNE 29: Vehicles drive on the Eastlink tolled freeway as it officially opens to the public on June 29, 2008 in Melbourne, Australia. Eastlink is Australia's largest urban road project and has cost AUD$2.5 billion to build. The 39km freeway features 88 bridges, 17 interchanges and 1.6km twin tunnels. More than 250,000 vehicle trips are forecast for Eastlink each day. (Photo by Scott Barbour/Getty Images) , Photographer: Scott Barbour/Getty Images AsiaPac

(Bloomberg) -- Transurban Group Chief Executive Officer Scott Charlton said the company wants to buy a stake in EastLink, a toll road in southeast Melbourne, as the infrastructure owner seeks to broaden its portfolio.

“That’s something we’d love to be part of,” Charlton said in an interview with Bloomberg Television on Tuesday. ”It’s something that’s come up recently.”

Transurban told investors in a filing on Tuesday that a group of EastLink investors were reportedly considering selling their stakes. It’s not clear how much of 39 kilometer (24 mile) tolled road might be available, or when a sale could take place, the company said. EastLink has a fixed-term concession that runs to 2043.

If struck, a deal would likely be among the last for Charlton at Transurban. The Melbourne-based company said earlier Tuesday that he will step down at the end of 2023, ending a decade-long tenure that saw Transurban’s market value balloon more than fivefold to A$43 billion ($30 billion) as its asset network grew.

A search for Charlton’s successor is underway, and Charlton will stay until the new CEO joins. Transurban operates more than 20 roads in Australia and North America, including Sydney’s WestConnex and the 95 Express Lanes in Greater Washington.