At least two groups that include Canadian pension investment bodies are planning to bid for a minority stake in TransCanada’s Mexican pipeline business
by Leo Almazora
According to a report from the Financial Post, Calgary-based TransCanada Corp.’s Mexican pipeline business, with an estimated value of USD$2 billion, may include a couple of Canadian pension funds in its list of stakeholders in the foreseeable future.
Based on a disclosure from knowledgeable but anonymous sources, at least two groups that include Canadian pension funds are intending to submit bids for a minority stake in the business this week. The sources said that Canada Pension Plan Investment Board, Public Sector Pension Investment Board and Borealis Infrastructure Corp. have formed a consortium, through which they intend to make an offer for as much as 49.9% of the business.
The same sources said that Caisse de Depot et Placement du Quebec’s new Mexican joint venture, CKD Infraestructura Mexico SA, is also setting up to submit a proposal for the stake in the pipeline. At least three other groups are exploring bids.
The reports are yet to be confirmed, however, as representatives from the CPPIB, Borealis, PSP and the Caisse have declined to comment. A spokesman for TransCanada remained similarly noncommittal in an emailed statement.
“We are in the process of seeking passive investors to take a minority stake in our Mexico natural gas pipelines business. We will not be providing any further updates or responding to speculation until a deal is announced,” the email reads.
A four-year, 7.7-trillion peso (US$411 billion) plan for infrastructure investments targeting energy, transportation, and other projects was recently enacted by the Mexican government. The country’s focus on sound economic and monetary policy over the past decade has attracted long-term investors like Canadian pension funds, Caisse Chief Executive Officer Michael Sabia said in a September interview.
TransCanada is looking to sell its minority stake in the pipeline to help finance a US$10.2-billion purchase of Columbia Pipeline Group Inc.
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New report gives thumbs-up to CPP expansion
According to a report from the Financial Post, Calgary-based TransCanada Corp.’s Mexican pipeline business, with an estimated value of USD$2 billion, may include a couple of Canadian pension funds in its list of stakeholders in the foreseeable future.
Based on a disclosure from knowledgeable but anonymous sources, at least two groups that include Canadian pension funds are intending to submit bids for a minority stake in the business this week. The sources said that Canada Pension Plan Investment Board, Public Sector Pension Investment Board and Borealis Infrastructure Corp. have formed a consortium, through which they intend to make an offer for as much as 49.9% of the business.
The same sources said that Caisse de Depot et Placement du Quebec’s new Mexican joint venture, CKD Infraestructura Mexico SA, is also setting up to submit a proposal for the stake in the pipeline. At least three other groups are exploring bids.
The reports are yet to be confirmed, however, as representatives from the CPPIB, Borealis, PSP and the Caisse have declined to comment. A spokesman for TransCanada remained similarly noncommittal in an emailed statement.
“We are in the process of seeking passive investors to take a minority stake in our Mexico natural gas pipelines business. We will not be providing any further updates or responding to speculation until a deal is announced,” the email reads.
A four-year, 7.7-trillion peso (US$411 billion) plan for infrastructure investments targeting energy, transportation, and other projects was recently enacted by the Mexican government. The country’s focus on sound economic and monetary policy over the past decade has attracted long-term investors like Canadian pension funds, Caisse Chief Executive Officer Michael Sabia said in a September interview.
TransCanada is looking to sell its minority stake in the pipeline to help finance a US$10.2-billion purchase of Columbia Pipeline Group Inc.
Related stories:
New report gives thumbs-up to CPP expansion
