CPPIB to Acquire 49.99% in Grupo Costanera
According to the press release, “the Canada Pension Plan Investment Board (CPPIB) announced today that it has entered into an agreement to acquire significant minority stakes in five major Chilean toll roads from the Atlantia Group. The agreement involves CPPIB acquiring a 49.99% interest in Grupo Costanera. CPPIB will commit an equity investment of 560 billion Chilean pesos or approximately C$ 1.14 billion for this transaction.
Andre Bourbonnais, Senior Vice-President, Private Investments for CPPIB, said: “The addition of these five major urban toll roads in Chile is an excellent opportunity to expand our infrastructure portfolio in a developing market. Chile’s strong economic growth prospects and its stable legal and regulatory framework make it an attractive country for investors like CPPIB. As a long-term investor, we seek infrastructure assets that will deliver stable returns over a prolonged period. We look forward to partnering with Atlantia, one of the world’s leading toll road operatiors.”
“With a long-term investment horizon, and the internal expertise to deploy capital in complicated transactions, CPPIB is one of only a few global institutional investors that is able to complete a transaction of this size and complexity,” said Mr. Bourbonnais.
Grupo Costanera is the largest urban toll road operator in Chile and owns a portfolio of five toll roads that span a 188-kilometre network. Four of the toll roads are located in Santiago metropolitan region including two major commuter motorways, Costanera Norte and Vespucio Sur. The fifth toll road is located on the central coast of Chile.
Atlantia Group will continue to own the remaining 50.01% interest in Grupo Costanera.”
Read more: CPPIB Press Release