CANADA - The Canada Pension Plan Investment Board has purchased a 10% stake in a Toronto toll road, and its holding could increase to 40% if CPPIB's planned acquisition of Intoll Group goes through.
The CPPIB said it will acquire its stake in the 407 Express Toll for C$894m ($882m) from Spanish owner Cintra Infraestructuras. After the acquisition, Cintra will still own 43.23% of the road; Intoll Group, 30% and SNV-Lavalin, 16.77%.
"Consistent with our investment thesis for our proposed acquisition of Intoll Group, we believe 407 ETR is an attractive infrastructure asset and is a strategic fit with CPPIB's portfolio and long-term investment mandate," said Andre Bourbonnais, senior vice-president, private investments, CPPIB.
"As an essential toll road in the Greater Toronto area, Highway 407 ETR is situated strategically to ease traffic congestion and to benefit from future urban growth in Toronto."
The CPPIB announced in August it would buy Intoll Group for A$3.44bn after increasing its initial offer for the Australian toll road operator. (Global Pensions; August 27, 2010)