CANADA - The C$87.4bn (US$81.8bn) Ontario Teachers Pension Plan (OTPP) will acquire an additional 35.5% stake in UK-based Bristol International Airport (BIA) in a deal with Macquarie Airports.
OTPP currently holds 14.5% of BIA, which it originally acquired in 2002. The additional stake will bring its holding to 50%. The other half will continue to be owned by Macquarie European Infrastructure Fund (MEIF), while Macquarie Airports' holding will drop to zero.
Macquarie Airports is an airports owner and operator. Part of the Macquarie Group, it is listed on the Australian Stock Exchange.
OTPP senior vice-president and head of infrastructure investing Stephen Dowd said: "As an experienced investor in the sector and a Bristol shareholder for several years, we have strong confidence in the airport's outlook and future prospects and we are fully supportive of its long-term development strategy."
Dowd added long-term infrastructure investments, such as airports, water and power plants, electricity and gas distribution networks and port facilities, provide stable returns that correlate well with inflation.
The pension fund also has other holdings in airports, including those in Birmingham and Sydney.
Separately, OTPP sold 1.5% of its holdings in Brazilian oil and natural gas company OGX to the company's chairman and chief executive Eike Batista.
According to a statement by OGX, OTPP sold 2,423,975 global depositary receipts (GDRs) representing 484,795 common shares. Following this transaction, OTPP will remain OGX's second largest shareholder, owning approximately 10.7% of the company.
Batista's ownership position in OGX will increase to approximately 62%.
OTPP senior vice-president for public equities Wayne Kozun said: "This transaction is simply a portfolio adjustment made possible by Batista's desire to increase his stake in the company."
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