ConnectEast: Monopoly Melbourne toll road with traffic growth ramping up. No new equity required in our view. Major chance of corporate action involving neighbour Transurban (which could pay up to 60¢ a share), refinancing risk overstated. Current enterprise value $2 billion, total cost of building the asset around $4 billion. Corporate appeal as new feeder roads also add to the attraction.
Eureka/Charlie Aitken
CEU Price at posting:
32.1¢ Sentiment: Hold Disclosure: Held
