The next time someone drives across north Toronto on the 407 ETR, they can take comfort that the tolls they pay will partly fund the Canada Pension Plan, thanks to an investment by the Canada Pension Plan Investment Board (CPPIB).
The CPPIB has struck a deal to buy Sydney, Australia-based Intoll Group, for about $3 billion. The company holds stakes in toll roads in Sydney and Toronto. The deal gives the CPPIB a 30% stake in the 407 ETR.
Intoll owns a 25% stake in the Westlink M7, a 40-kilometer toll road on the west side of Sydney.
Intoll was spun off from Macquarie Infrastructure Group in January, but had seen its share price fall more than 9% since then. The deal represents a 36% premium on its pre-negotiation stock price.
