Ontario Teachers' Pension Plan

Ontario Teachers' Pension Plan

August 05, 2005 03:00 ET

Ontario Teachers' and AIG Highstar Capital II buy InterGen for C$2.1 Billion

TORONTO, ONTARIO--(CCNMatthews - Aug. 5, 2005) - The Ontario Teachers' Pension Plan and AIG Highstar Capital II, L.P. have completed the purchase of InterGen N.V. from Shell Generating (Holding) B.V. and Bechtel Enterprises Energy B.V. for $2.1 billion (US$1.75 billion). The transaction was originally announced in April 2005, subject to certain conditions and regulatory approvals which have been met.

Jim Leech, Senior Vice-President, Ontario Teachers' said, "As a long-term investor, we are pleased to acquire InterGen. It is a well managed company with a diversified international portfolio of new and efficient power assets. As most of the power from these plants is sold under long-term contracts, this investment should produce stable and long-term cash flows that are well suited to our growing infrastructure portfolio".

The 10 InterGen plants purchased are located in the UK, the Netherlands, Mexico, the Philippines, China and Australia. InterGen's equity share in these plants amounts to 5,500 MW of production capacity. Combined with other jointly owned power generation facilities in the U.S., this acquisition brings the total capacity for Ontario Teachers'/AIG generation to 7,000 MW.

About Ontario Teachers'

The Ontario Teachers' Pension Plan is one of Canada's largest financial institutions with net assets of $85 billion. It invests to secure the retirement income of 255,000 active and retired teachers in the province of Ontario, Canada. With infrastructure and timber assets (including this purchase of InterGen) totaling C$4.5 billion worldwide, Ontario Teachers' is actively seeking opportunities to expand its portfolio of electrical transmission systems, oil export pipelines, toll highways, power generation and airports.

About AIG Highstar Capital II

AIG Highstar Capital II L.P. is a private equity fund sponsored by AIG Global Investment Group, an indirect subsidiary of American International Group, Inc. AIG Global Investment Group (AIGGIG) comprises a group of international investment adviser companies which provide advice, investment products and asset management services to clients around the world. The members of AIGGIG are subsidiaries of American International Group, Inc.

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