Canadian pension funds acquire 40% of Impulsora del Desarrollo

21 November 2019 - 12:00 am UTC

Two Canadian pension funds have agreed to jointly acquire 40% of Mexican infrastructure developer Impulsora del Desarrollo y el Empleo en America Latina (IDEAL) for MXN 50.40bn (USD 2.6bn), according to a 21 November press release.

Canada Pension Plan Investment Board (CPPIB) will acquire 23.7% and Ontario Teachers’ Pension Plan (OTPP) will acquire 16.3% of IDEAL through the launch of a public tender offering at MXN 43.96 (USD 2.27) per share.

The developer, which belongs in part to Mexico’s richest man Carlos Slim through his financial services company Inbursa, will also launch a Fibra E investment trust in to which it will transfer partial stakes in four of IDEAL’s toll roads: Arco Norte (40%), Chamapa-La Venta (57%), the Toluca Bypass (44%) and Tijuana-Tecate (9%).

Once the Fibra E is formed, CPPIB and OTPP will carry out a secondary offering for 18.7% of the vehicle, which will reduce their ownership to small minority positions while also introducing other investors, according to an IDEAL filing of 21 November.

Read more