CANADA - The CAN$85bn Ontario Teachers' Pension Plan (OTPP) has partnered with a private equity fund to buy power company InterGen NV and 10 of its power plants for CAN$2.2bn as part of plans to expand its infrastructure portfolio.
The joint venture between OTPP and AIG Highstar Capital will see them purchase the Intergen power plants from Shell Generating and Bechtel Enterprises Energy.
Jim Leech, senior vice president at OTPP, said: “This is an excellent opportunity to build on our existing portfolio of power generation assets that we currently own in partnership with AIG.
“InterGen has a well diversified international portfolio of new and efficient power assets. As most of the power from these plants is sold under long-term contract, this investment should produce stable and long-term cash flows that are well suited to our growing infrastructure portfolio.”
The InterGen portfolio includes 10 operational power plants with capacity in the UK, Netherlands, Mexico, Philippines, China and Australia. The company’s power facilities are said to burn less fuel for every megawatt of power generated and produce lower emissions.
The transaction is expected to close in mid-2005, subject to regulatory approvals.
AIG Highstar Capital is a private equity fund sponsored by AIG Global Investment Group, an indirect subsidiary of American International Group.
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