GLOBAL - Canadian pension fund giants OMERS and CPP are helping to raise the stakes in the takeover battle waged between rival consortiums for Associated British Ports Holdings, with latest bids valuing the group at almost £2.58bn.
As Global Pensions went to press, a consortium led by the Macquarie European Infrastructure Fund, which features the Canada Pension Plan Investment Board amongst its members, had matched the revised bid of 840p per share lodged by Goldman Sachs’ Admiral Acquisitions consortium earlier today.
The Admiral consortium, which counts Borealis, the infrastructure division of Ontario Municipal Employees Retirement Fund amongst its members, revised the bid it made yesterday of 810p per share, reportedly in reaction to a notice of interest in ABP from the Macquarie consortium lodged this morning.
The GIC Special Investments private-equity unit of Singapore Government Investment Corp, which manages the island state's foreign reserves, and British insurer Prudential are also within the Admiral camp.
The Macquarie consortium also features the 3i Group and Macquarie Bank.
In May, Global Pensions reported that Canadian pension funds were eyeing up UK infrastructure deals through tie-ups with investment banks.
The story referred to a Goldman Sachs consortium thought to include the Ontario Teachers’ Pension Plan (OTPP) and OMERS-vehicle Borealis, which was bidding for the British Airports Authority (BAA).
The investment bank is likely to be keen to cement the ABP deal having recently been elbowed out of its bid for BAA by Spanish services group Ferrovial.
A source close to the BAA deal said the industry was likely to see more pension funds teaming up with investment banks.
“They will need equity and pension funds are a good match because they are willing to let someone else take management control, and they have a lot of cash,” he commented.
By Lisa Haines
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