The Canada Pension Plan Investment Board (CPPIB) and Hermes Infrastructure have signed an agreement to invest about £1.6 billion (C$2.9 billion) to acquire a stake in Associated British Ports (ABP) of at least 30%.
ABP owns and operates 21 ports in England, Scotland, and Wales.
CPPIB and Hermes Infrastructure, part of Hermes Investment Management, are acquiring this interest in ABP from GS Infrastructure Partners and Infracapital. They may acquire a further 3.33% subject to pre-emption rights.
Read: CPPIB forms U.K. regional joint venture
Borealis Infrastructure, a division of OMERS, and Government of Singapore Investment Corporation (GIC) will remain as ABP shareholders. CPPIB and Hermes
“We are excited about this unique opportunity to invest in a significant portfolio of landlord ports with a proven track record of steady operational performance,” says Cressida Hogg, managing director and global head of infrastructure at CPPIB. “This investment is an important addition to our global infrastructure portfolio and fits well with CPPIB’s long-term investment mandate.”
The transaction is conditional on customary anti-trust clearances and is expected to close in summer 2015.
A significant investor in the U.K., CPPIB has invested approximately £7.6 billion (C$14.3 billion) in real estate, infrastructure, public equities, real estate investment funds, and direct investments, as at December 31, 2014.
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