Teachers’ to benefit from Northumbrian takeover

The Ontario Teachers’ Pension Plan (Teachers’) is preparing to sell Northumbrian Water Group PLC to Hong Kong’s Cheung Kong Infrastructure Holdings for $3.8 billion, according to regulatory filings by Northumbrian.

Teachers’ owns 26.8% of the company, buying the stake in 2005 for $615 million. Teachers should pull in about $1.01 billion from the sale, for a profit of about $403 million.

Cheung Kong is controlled by Hong Kong billionaire Li Ka-shing. Northumbrian provides water services to nearly 3 million people in the north-east of England.