Canada Pension Plan Investment Board (CPPIB) and Hermes Infrastructure have signed an agreement to invest approximately GBP 1.6 billion (USD 2.36 billion) to acquire a stake in Associated British Ports (ABP) of at least 30%, and may acquire a further 3.33% subject to pre-emption rights.
CPPIB and Hermes Infrastructure, part of Hermes Investment Management, are acquiring this interest in ABP from GS Infrastructure Partners and Infracapital, while Borealis Infrastructure and Government of Singapore Investment Corporation (GIC) remain as ABP shareholders. The transaction is expected to close in summer 2015.
“ABP operates strategic UK infrastructure assets and is an excellent fit within Hermes Infrastructure’s Core investment strategy. This targets infrastructure businesses that deliver long-term predictable inflation-linked cash flows, with robust cash yield,” Peter Hofbauer, Head of Hermes Infrastructure, said.
”An investment in ABP is expected to deliver on all of these along with appropriate governance and a high-quality management team. We look forward to supporting the business in making its important contribution to the UK economy alongside our partners CPPIB, Borealis Infrastructure and GIC.”
ABP owns and operates 21 ports in England, Scotland, and Wales, and is the UK’s leading ports group.