The Atlas Arteria Group (ASX: ALX) share price has been a positive performer on Tuesday morning.
In morning trade the toll road operator’s shares are up 4% to $8.23.
Why is the Atlas Arteria share price pushing higher?
As well as getting a lift from the rebounding share market, an announcement out of Atlas Arteria this morning has given its shares a boost.
According to the release, the company has now completed its APRR transaction. This means it now owns a 31.14% indirect interest in APRR and a 31.17% indirect interest in ADELAC.
APRR is a France-based toll road group and ADELAC is a smaller toll road operator which connects to APRR in the south east of France.
Together APRR and ADELAC comprise a 2,318km motorway network located in the East and South East of France.
This adds to its network which includes roads in the United States and Germany. In the United states the company has 100% ownership in the Dulles Greenway. This is a 22km toll road in the Commonwealth of Virginia. Whereas in Germany, it owns 100% of the Warnow Tunnel in the north-east city of Rostock.
As the new shareholder agreements with co-investors in the APRR structure have now come into effect, all remaining management agreements with Macquarie Group Ltd (ASX: MQG) have been terminated.
Though, in order to ensure a smooth transition, there will be a short term transition services agreement with Macquarie. However, no fees are payable.
Atlas Arteria’s CEO, Graeme Bevans, appeared to be very pleased to complete the transaction.
He said: “I am immensely proud of the hard work and dedication of the entire Atlas Arteria team. This is an important strategic step for Atlas Arteria and positions us well for future growth. It creates significant value for our securityholders by increasing operational influence and improving governance in both APRR and ADELAC. We are grateful for the trust our securityholders have placed in us, establishing Atlas Arteria as a fully independent toll road owner and operator.”
Elsewhere, fellow toll road operator Transurban Group (ASX: TCL) is edging higher today ahead of the Reserve Bank’s cash rate meeting. As both shares are regarded as bond proxies, they could be in demand with investors if the central bank opts to cut rates.