Owner of toll roads across Australia and Virginia, Transurban Group has rejected a takeover offer from Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan, terming the proposal as "incomplete, highly conditional and non-binding".

Under the proposal, which was put forward on October 27, the Canada Pension and Ontario Teachers' funds had offered a privatization bid of $5.25 per share, which Transurban immediately rejected. "Consistent with its fiduciary duties, the board of Transurban remains willing to engage on bona fide proposals which provide appropriate value and certainty to security-holders in a change of control transaction", the company said in a statement.

In an official statement to the Australian Stock Exchange, Melbourne based Transurban, which has a current market value of about A$6.6 Billion ($6 Billion), confirmed the happenings. The two funds, which as of now hold a 28% stake in Transurban, lost on major stock investments in the past year, and are looking to make up for the hurt by buying infrastructure and alternative assets. Currently, the Pension and Teachers funds manage over $190 Billion worth of assets.

Although an immediate bid has been rejected, Transurban has said that the company is willing to negotiate with the funds and a revised proposal is more than welcome.