The Public Sector Pension Investment Board is buying a 7.51 per cent ownership stake in the 407 Express Toll Route from the Canada Pension Plan Investment Board.
The price for the strategic stake in the Greater Toronto Area highway asset will cost roughly $2.39 billion payable at closing and a deferred payment to be made up to 18 months after closing. Following the closing of the transaction, the CPPIB and other institutional investors will hold a 44.2 per cent stake while Ferrovial S.E. will own the remaining 48.29 per cent.
In a press release, Sandiren Curthan, managing director and global head of infrastructure investments at PSP Investments, said the deal represents the largest Canadian infrastructure commitment to date for the investment organization. “PSP Investments has deep expertise in the transportation sector and will support the long-term stability and reliability of this critical road that services more than three million Canadians each week.”
Read: CPPIB increases stake in 407 toll highway
In other news, the CPPIB’s planned acquisition of a U.S.-based energy company received approval from the Public Service Commission of Wisconsin.
The CPPIB’s takeover of shares in Allete Inc., alongside Global Infrastructure Partners, is valued at US$6.2 billion without interest, including the assumption of debt.
According to a press release, the PSCW’s ruling was needed because Allete owns a regulated utility that delivers electricity, natural gas and water to Wisconsin-based customers.