CPPIB, Ontario Teachers’ take stake in Mexican infrastructure developer
The Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan are purchasing 40 per cent of the shares of Impulsora del Desarrollo y el Empleo en América Latina, a Mexican infrastructure developer.
The two organizations made their tender offer to buy shares of the publicly traded company, at MXN$43.96 per share, following the initial announcement of their intention to purchase in November 2019. In accordance with Mexican law, the pension funds will receive their shares as of April 17, with the tender offer formally settling on April 23.
The developer currently holds a portfolio of 18 infrastructure projects, including 13 toll roads, three logistics terminals and two wastewater treatment plants. It also operates an electronic toll collection services business. The company, also known as IDEAL, has already partnered with the CPPIB and Ontario Teachers’ on two toll roads, the Arco Norte and the Pacifico Sur.
Read: CPPIB, Ontario Teachers’ increase positions in Mexican infrastructure
The deal also includes the pending development of an infrastructure investment trust, Fideicomiso de Inversión en Energía e Infraestructura, known in Mexico as FIBRA-E. Once finalized, the trust will be funded by IDEAL, as well as through subsidiaries of both pension funds. The trust will be managed by IDEAL and will purchase stakes in four of its toll roads. Following the first round of funding, the CPPIB and the Ontario Teachers’ will lead a secondary round, through their affiliates, thereby reducing their ownership to smaller positions, while introducing fresh investors.
In other investment news, the Public Sector Pension Investment Board is leading a $100-million round of equity financing for RefleXion Medical, a California-based therapeutic oncology company.
Existing investors in RefleXion participated in the financing round, including T. Rowe Price, Pfizer Ventures and Johnson & Johnson Innovation.
Read: PSP part of consortium taking majority stake in video-telematics company
“RefleXion’s bold vision for the future of cancer care stands to completely reshape how physicians think about treating patients with stage-4 cancer,” said Loïc Julé, managing director of the global investment partnerships portfolio at the PSP, in a press release. “This is exactly the mindset of companies we strive to build long-term relationships with.”
RefleXion’s technology focuses on overcoming the technical limitations that typically limit current radiotherapy techniques to treating one to two tumours at a time. It seeks to rapidly treat multiple tumours, including those that exhibit more motion due to bodily functions such as breathing or digestion, during a single treatment session.