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CPPIB and the Caisse De Depot Et Placement Du Quebec Invest $159.7 Million in Genivar

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The press release states, “GENIVAR Inc.(“GENIVAR” or the “Company”) announced today that it has completed an equity private placement (the “Private Placement”) of 6,500,000 common shares from treasury at a price of $24.57 per share for aggregate gross proceeds of $159,705,000. Participants in the Private Placement are Canada’s top two institutional investors, the Canada Pension Plan Investment Board (“CPPIB”) and the Caisse de dépôt et placement du Québec (the “Caisse”), each of whom invested a gross amount of $79,852,500.

Proceeds from the Private Placement will primarily be used to repay debt and for general corporate purposes.

“We are very happy to have received such support from Canada’s two largest institutional investors. CPPIB and the Caisse’s decision to support GENIVAR, is a sign of their commitment to our domestic and international growth strategy,” stated Pierre Shoiry, President and Chief Executive Officer of GENIVAR. “This financing will allow us to continue growing our Canadian business while moving forward on executing our international expansion plans. Our objective is to deliver on our disciplined strategy, which has proven successful in the past and will create long-term value for our shareholders.”

“In a time of great market volatility, our strong balance sheet and financial position will firstly allow us to execute our growth strategy, and secondly, ensure the sustainability of our firm in the long run with two strong partners alongside GENIVAR,” commented Alexandre L’Heureux, Chief Financial Officer of GENIVAR. “Both institutions have clearly signaled their long-term commitment to GENIVAR, in part by agreeing to have portions of their acquired common shares locked-up for up to 18 months before such common shares can be freely tradable. The institutions are also subject to certain other investment restrictions. Additionally, in keeping with their interest in supporting our international expansion plans, CPPIB and the Caisse have each been granted a pre-emptive right to participate pro rata in future offerings of the Company.”

“We believe that GENIVAR’s strong and experienced management team combined with its future growth opportunities, both in Canada and globally, make this a compelling investment for CPPIB,” said Scott Lawrence, Vice-President and Head of Relationship Investments, CPPIB. “This investment builds on our Relationship Investments strategy to be a cornerstone minority shareholder in public companies where CPPIB can participate in, and contribute to, their future success.”

“The Caisse is proud to invest in this Quebec company that has become a Canadian leader in the engineering consulting industry,” explained Normand Provost, Executive Vice-President Private Equity and Chief Operations Officer at the Caisse. “By supporting GENIVAR in its international development projects and its continued growth in Canada, we once again combine returns with economic development in Quebec.”

GENIVAR has also agreed to provide CPPIB and the Caisse with the right to nominate one individual each to GENIVAR’s board of directors so long as CPPIB and the Caisse each own greater than 9.5% of GENIVAR’s outstanding common shares.

Pursuant to this Private Placement, the number of common shares of GENIVAR issued to CPPIB and the Caisse represents 19.92% of the outstanding common shares of the Company. The number of GENIVAR’s common shares held by CPPIB now is 3,257,700 or 9.98% of common shares outstanding, while the Caisse owns 3,250,000 or 9.96% of GENIVAR’s common shares outstanding.
This Private Placement, which does not require shareholders’ approval, has been approved by the Toronto Stock Exchange.”

Read more: Press Release

Altitude Infrastructure Gets Financing on Haute-Garonne Network Project

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Altitude Infrastructure SAS inked a 25-year concession agreement and closed a debt financing package for the deployment and maintenance of an ultra-high-speed broadband network in Haute-Garonne. Haute-Garonne is a department in the south of France.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Guggenheim Partners Agrees to Acquire Millstein & Co.

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On July 11, 2018, Guggenheim Partners inked a deal to acquire New York-based Millstein & Co., L.P., an advisory firm formed by Jim Millstein. Millstein will become co-Chairman of Guggenheim’s securities business. Millstein & Co. will become part of Guggenheim Securities, the investment banking division of the company. Ronen Bojmel will lead the combined Guggenheim restructuring team.

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GIC Holds Steady, Maintains Cautious Investment Stance

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Singapore’s GIC Private Limited returned a 5-year return of 6.6% ended March 31, 2018. At March 2018, GIC had increased cash and nominal bonds up 2% to 37% of the total portfolio, while lowering exposure to developed market equities from 27% to 23%.

GIC CEO Lim Chow Kiat commented in his annual letter in the FY 2017-2018 report that, “In view of the high asset valuations, the increased risk of monetary policy tightening across different jurisdictions and the elevated uncertainty, we maintain a cautious investment stance. Nevertheless, we remain ready to take advantage of potential dislocations. The jump in market volatility experienced in early 2018 offered an indication of potentially bigger market turbulence and opportunities in the future.”

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