Sovereign Wealth Fund Institute

The press release states, “CPP Investment Board (CPPIB) announced today that a consortium including CPPIB has completed the acquisition of a 24.1% stake in the Gassled Joint Venture (Gassled) from Statoil ASA. The consortium entered into an agreement to acquire this stake in June 2011.

The buyer is Solveig Gas Norway AS, a holding company that is approximately 40% owned by CPPIB, 30% by Allianz Capital Partners, a subsidiary of Allianz SE, and 30% by Infinity Investments SA, a wholly owned subsidiary of the Abu Dhabi Investment Authority. The total value of the transaction as announced on June 6, 2011 is NOK 17.35 billion or approximately C$3.18 billion.

André Bourbonnais, Senior Vice-President, Private Investments for CPPIB, said, “We are pleased to close this significant transaction alongside our consortium partners. Gassled is a good fit with CPPIB’s infrastructure portfolio and long-term investment strategy, and we look forward to becoming an important strategic partner in the future development of the Gassled network.”

Established in 2003, Gassled is an unincorporated joint venture which owns the majority of the gas transport infrastructure on the Norwegian Continental Shelf. It is a core infrastructure asset and a strategic asset in the Northwestern Europe energy landscape. Gassled is expected to benefit from the growth in European gas demand and Norway’s long term position as a key supplier of gas to Europe.”

Read more: Press Release

According to the press release, “the Caisse de dépôt et placement du Québec has announced that it has entered into definitive agreements with ConocoPhillips to purchase its 16.55% interest in Colonial Pipeline Company and Colonial Ventures LLC (“Colonial”) for US$850 million.

Colonial Pipeline is the largest refined petroleum products pipeline in the United States. It extends more than 8,800 kilometres between the Gulf of Mexico and the Northeastern U.S. and transports the equivalent of 2.3 million barrels per day.

Prior to being finalized, the transaction will be subject to a right of first refusal (ROFR) by the shareholders of Colonial Pipeline. Based on the outcome of the ROFR exercise, the Caisse could close the transaction during the first quarter of 2012.

“The Caisse is always interested in quality assets that yield stable, long-term returns,” said Normand Provost, Executive Vice-President, Private Equity and Chief Operations Officer at the Caisse de dépôt et placement du Québec. “This particular investment targets an infrastructure project in a regulated industry that we know well through our investments in Gaz Métro, Interconnector, Enbridge and Fluxys.”‘

Read more: Press Release

The China Investment Corporation (CIC) is planning to open an office in Toronto. The office will be the main center for North American investments for the CIC. Toronto was chosen over New York and London, as China’s SWF first western outpost. This is a surprise too many, since sovereign funds like the Kuwait Investment Authority, Abu Dhabi Investment Authority, and Singapore’s GIC started Western offices in cities like New York and London. There are a number of select reasons why the CIC chose Toronto over other financial centers like New York, London, and Chicago. First, Toronto is still relatively close to New York and even a fast flight to London. Toronto is also close to Calgary and Vancouver, key cities that have a large presence in the Canadian energy markets.  Second, Canada is one of the only G-7 countries that have been somewhat resilient in the financial crisis of 2008. US Financials proved to be troubling investments for several sovereign funds. From a macro perspective, Canada has a myriad of natural resource opportunities to invest in, coupled with a media and government less intrigued in protectionism. That could change overtime however.

The last office CIC opened was in Hong Kong. This marks the first step in which the CIC will begin to deploy billions directly into the Americas to diversify their holdings. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

According to the press release, “Laricina Energy Ltd. (Laricina or the Company) is pleased to announce that it has completed today a private placement to a wholly-owned subsidiary of Korea Investment Corporation (KIC) of 1,666,000 common shares at Cdn. $30.00 per common share for gross proceeds of approximately Cdn. $50 million.

On July 28, 2010, Laricina completed a private placement of 846,933 common shares and a non-brokered offering of 27,921 common shares, both at a price of Cdn. $30.00 per common share for gross proceeds of approximately Cdn. $26.2 million. The addition of the KIC private placement financing increases the total gross proceeds raised to Cdn. $76.2 million.

Both private placement offerings were completed on a brokered basis with a syndicate of agents co-led by Peters & Co. Limited and RBC Capital Markets.

Macquarie Capital Markets Canada Ltd. acted as financial advisor to KIC.”

Source: Laricina Press Release

[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

According to Bloomberg, “Australia’s sovereign wealth fund said it may join two Canadian pension funds in a A$6.8 billion ($6.2 billion) bid for toll-road owner Transurban Group after an initial offer was rejected five weeks ago. The A$64.3 billion Future Fund is in talks with Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan, the Australian fund said today in a statement. Australia’s biggest toll-road company rejected an A$5.25 offer on Nov. 5, which was 20 percent higher than the previous closing price.

Canada Pension and Ontario Teachers, with almost $200 billion of assets, already own a combined 28 percent of Transurban, according to Bloomberg data. Even with the Future Fund’s potential backing, a higher offer may be needed to win support from Transurban, which owns toll roads including the Pocahontas 895 in Virginia and the Hills M2 in New South Wales.

“It gives more firepower to the bid,” said Andrew Chambers, an analyst at Austock Group Ltd. in Melbourne with a “buy” rating on Transurban. “We wouldn’t be telling people to accept a bid of A$5.25, regardless of who’s offering it.”

No commitment or understanding has yet been reached by the Future Fund with the Canadian funds, and discussions are preliminary, Will Hetherton, head of public affairs at the fund, said in the statement.”

read more: Bloomberg

Press Release states that, “Teck Resources Limited (“Teck”) announced today that China Investment Corporation (”CIC”) has agreed to purchase through a wholly-owned subsidiary 101.3 million Class B subordinate voting shares of Teck for C$17.21 per share. Teck will apply the net proceeds of the transaction to reduce outstanding bank debt. On closing, CIC will indirectly hold approximately 17.5 per cent of Teck’s outstanding Class B subordinate voting shares, representing approximately 17.2 per cent equity and 6.7 per cent voting interests in Teck. Upon completion of the transaction, Teck’s Class A shareholders as a group will hold a 61.8 per cent voting interest in Teck with Temagami Mining Company Ltd. holding a 28.5 per cent voting interest.

Teck President and CEO Don Lindsay said: ‘This transaction will have an immediate and very positive effect on Teck’s balance sheet, and represents an attractive opportunity for Teck to establish a relationship with a major Chinese financial investor, with a deep understanding of China, the world’s largest consumer of our principal products.’”

read more: Press Release

[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]