AltaLink, a consortium of investors that includes the giant C$73bn (US$48.4bn) Ontario Teachers Pension Plan (OTPP), has bought TransAlta's electricity transmission network for C$850m (US$562.7m).
Under the terms of the deal, AltaLink will pay C$850m for all of the Alberta based power company's transmission assets, whilst the OTPP will provide all interim debt financing. With the acquisition of TransAlta's network, AltaLink will control over 250 substations and 12,000 km of transmission lines, which accounts for 60% of Alberta's electrical power lines.
Speaking about the acquisition, Leo de Bever, OTPP senior vice-president, said: Alberta has indicated that it wants to make it attractive for investors to expand its electricity industry. That makes Alberta's transmission business a very good asset to finance pensions.
The AltaLink group is made up of the OTPP, engineering and construction group SNC-Lavalin, independent Australian investment bank Macquarie and Trans-Elect, an electric transmission company. SNC-Lavalin has a 50% stake in AltaLink; the OTPP 25%; Macquarie 15%; and Trans-Elect, 10%.
By Geoffrey Ho
Partner Insight: Members' evolving needs and expectations are driving changes in scheme administration. As the pensions landscape inevitably continues to change, how will your scheme's approach need to develop to keep pace?
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