Summary
A consortium made up of Macquarie Infrastructure Group (MIG) and Cintra Concessiones de Infraestructuras de Transporte wins the concession for the Indiana Toll Road at a bid price of US$3.8 billion in January 2006. Market observers think the amount is too high, but MIG is confident the asset is worth the price.
Teaching objectives
Valuation of infrastructure asset, determining the right discount rate, pros and cons of public-private partnerships, winner's curse.
Keywords
- toll road
- infrastructure
- public-private partnership (PPP)
- project finance
- privatization
- step-up swap
- Q31112
- Corporate Governance
- Auditing, Risk Control and Performance
