CANADA/NORWAY - A consortium of investors including the Canada Pension Plan Investment Board (CPPIB) has agreed to acquire a 24.1% stake in Norway's Gassled Joint Venture.
The acquisition was made by Solveig Gas Norway AS, a holding company 45% owned by Canada Pension Plan Investment Board, 30% by Allianz Capital Partners, a subsidiary of Allianz SE, and 25% by Infinity Investments SA, a subsidiary of the Abu Dhabi Investment Authority.
The total value of the transaction is NOK17.35bn ($3bn), to which CPPIB will commit an equity investment of NOK4.02bn.
Gassled is an unincorporated joint venture which owns the majority of the gas transport infrastructure on the Norwegian Continental Shelf. CPPIB said Gassled is expected to benefit from the growth in European gas demand and Norway's long term position as a key supplier of gas to Europe.
Andre Bourbonnais, senior vice-president, private investments for CPPIB, said, "We are pleased to be part of the Consortium investing in Gassled, which is a good fit with our infrastructure portfolio and investment strategy. As a long-term investor, we look for infrastructure assets that will deliver stable returns over a long time horizon and Gassled fits this criteria. Norway is known for having a strong economy and a transparent regulatory environment, which is attractive to investors such as CPPIB."
"Gassled represents a highly promising investment for CPPIB, and an opportunity to enter into a long-term partnership with like-minded investors. We look forward to becoming an important strategic partner in the future development of the Gassled network.
Completion of the transaction is subject to certain regulatory approvals including by the Norwegian Ministry of Petroleum and Energy.
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