CPP Investment Board

CPP Investment Board

June 15, 2009 23:15 ET

CPP Investment Board Enhances Proposal To Acquire Macquarie Communications Infrastructure Group

TORONTO, ONTARIO--(Marketwire - June 15, 2009) -

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

The CPP Investment Board (CPPIB) announced today that the Independent Directors of Macquarie Communications Infrastructure Group (MCG) and CPPIB have agreed to make a special capital distribution of A$0.50 per stapled security to MCG security holders on implementation of the schemes of arrangement. This distribution does not otherwise affect CPPIB's fully funded proposal to acquire all MCG stapled securities at A$2.50 per stapled security. The fully funded proposal (to be implemented via inter-conditional schemes of arrangement) was initially announced on March 31, 2009.

CPPIB's proposal of A$2.50 per stapled security and the special capital distribution of $0.50 by MCG represent a total equity value of MCG at A$1.64 billion (C$1.48 billion). The total consideration for the transaction including amounts used to repay debt is expected to be approximately A$2.2 billion (C$2.0 billion).

Mark Wiseman, Senior Vice-President, Private Investments said: "At the time of our initial proposal, there was considerable uncertainty in the markets and the original value of our proposal reflected that market uncertainty. Today, the capital markets have improved considerably. We feel the enhanced proposal is appropriate in order to help secure the support of MCG's largest security holders given the changed environment."

"We are pleased that MCG major security holder support for the transaction has been confirmed and that MCG's Independent Directors have continued to believe that the proposal is in the best interests of security holders," said Mr. Wiseman. "We continue to believe that this transaction enables us to acquire a diversified portfolio of high-quality infrastructure assets with stable cash flows at an attractive valuation."

For further details, please go to: http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=MCG#headlines

Exchange rate used: C$1:A$1.1063

About CPP Investment Board

The CPP Investment Board is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPP Investment Board invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At March 31, 2009, the CPP Fund totaled C$105.5 billion. For more information, please visit www.cppib.ca.

Not for release, publication or distribution, in whole or in part, in or into any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction.

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