(Recasts throughout with confirmation of toll road purchase)
SYDNEY, Nov 24 (Reuters) - Australia's Transurban Group TCL.AX said on Tuesday it has agreed to buy BrisConnections-owned BCS.AX toll road AirportLinkM7 for A$1.87 billion ($1.34 billion) and it plans to raise around A$1 billion to fund the deal.
Transurban, which already owns Brisbane's five other toll roads, said the deal will enhance its existing network in the state.
The company also expects the deal to enhance its EBITDA margin, though it did not specify any figures.
Transurban plans to raise A$1.025 billion through a rights offering priced at A$9.60 per share.
"The proceeds raised will be used to fund the AirportlinkM7 acquisition, reduce debt and to provide Transurban with the financial flexibility to pursue its pipeline of investment opportunities," the company said, retaining its full-year earnings per share guidance of 44.5 cents.
The purchase price is around half the cost of building AirportLinkM7, which opened to traffic in July 2012. Recent upgrades to the network and increases in toll prices had substantially increased the earnings profile of the road since July, Transurban said.
Transurban shares last traded on Monday at A$10.32. They are scheduled to remain on a trading halt until Friday. BrisConnections has been in receivership since early 2013.
Transurban last raised equity at A$6.75 a share in April 2014 to fund its acquisition of Queensland Motorways. ($1 = 1.3906 Australian dollars)