CPP Investment Board

CPP Investment Board

October 05, 2010 13:18 ET

CPP Investment Board Reaches Agreement With Ferrovial to Acquire 10% Stake of 407 Express Toll Route

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2010) - The CPP Investment Board (CPPIB) announced today it has reached an agreement with Cintra Infraestructuras, S.A., a Ferrovial subsidiary, to acquire 10% of 407 Express Toll Route (ETR) for C$894 million. To date, Cintra owned 53.23% of 407 ETR in partnership with Intoll Group (30%) and SNC-Lavalin Inc. (16.77%). The deal is expected to be completed within approximately two months. The sale is subject to a right-of-first refusal in favour of the other shareholders of 407 ETR.

"Consistent with our investment thesis for our proposed acquisition of Intoll Group, we believe 407 ETR is an attractive infrastructure asset and is a strategic fit with CPPIB's portfolio and long-term investment mandate," said André Bourbonnais, Senior Vice-President, Private Investments, CPPIB. "As an essential toll road in the Greater Toronto area, Highway 407 ETR is situated strategically to ease traffic congestion and to benefit from future urban growth in Toronto."

Today's agreement is in addition to the 30% stake in 407 ETR that CPPIB is potentially acquiring as part of CPPIB's proposed acquisition of the entire issued capital of Intoll Group, as previously announced on August 27, 2010.

During the first half of 2010, traffic on 407 ETR (measured in vehicle kilometers travelled) increased by 6% with respect to the same period in 2009. On June 30, 2010, 407 ETR set a new traffic volume record when it was used by 454,275 vehicles, a record previously set in October 2007.

As a long-term investor, CPPIB invests in global infrastructure assets that operate in strong regulatory environments. CPPIB's infrastructure portfolio includes gas and electric transmission systems, water utilities, toll roads and communications facilities.

About The CPP Investment Board

The CPP Investment Board (CPPIB) 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 June 30, 2010, the CPP Fund totaled $129.7 billion of which $6.1 billion represented infrastructure assets. For more information about the CPPIB, please visit www.cppib.ca.

Contact Information

  • CPP Investment Board
    Linda Sims
    Director, Media Relations
    (416) 868-8695