Canadian Pension Plan Investment Board (CPPIB) is currently in the process of converting its convertible preference shares in India’s Larsen & Toubro Infrastructure Development Projects (L&T IDPL).
The exercise will see CPPIB gain a 49% stake in L&T IDPL, Neil King, managing director of infrastructure at CPPIB, told Inframation today. He refrained from providing a value or a timeline to the transaction, saying only that it could take a couple of months.
“We will then sit down with L&T to discuss what they would like to do with this business,” King said in an interview.
CPPIB had invested INR 10bn (USD 166m at the time) in L&T IDPL in December 2014 followed by another INR 10bn in December 2015, against which it was allotted the convertible preference shares.
The agreement called for a mandatory conversion of shares at mutually agreed price.
At that time, it was the first direct private investment by a Canadian pension fund in an Indian infrastructure development company.