Canadian pension funds launch offer for 40% IDEAL stake

18 March 2020 - 12:00 am UTC

Canada Pension Plan Investment Board (CPP Investments) and Ontario Teachers’ Pension Plan (OTPP) on 17 March launched the MXN 50.4bn (USD 2.1bn) mandatory tender offer for 40% of shares in a Mexican infrastructure developer.

The pension funds announced the agreement to acquire the stake on 21 November 2019.

CPP Investments and OTPP, through CPPIB Infraestructuras Holdings Mexico and Sana Infrastructure Holdings México respectively, have offered MXN 43.96 per share for 1,146,407,492 shares in Impulsora del Desarrollo y el Empleo en América Latina (IDEAL), equivalent to a 40% stake, according to IDEAL’s Mexican stock exchange filing.

The tender offer will remain open from 18 March to 16 April.

IDEAL belongs in part to Mexico’s richest man Carlos Slim through his financial services company Inbursa.

The M&A transaction is taking place in parallel to a restructuring of IDEAL’s portfolio. The developer is creating a MXN 25.83bn Fibra E investment trust to hold stakes in four of its toll roads, which will permit the company to sell those stakes to institutional investors without ceding control.

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