Transaction Highlights:
- PSP Investments to acquire significant minority stake of
7.51% in 407 ETR from CPP Investments
- CPP Investments and Ferrovial to concurrently enter into
agreements to acquire an aggregate 6.76% stake in 407 ETR from
AtkinsRéalis
- Transactions position 407 ETR for long-term performance amid
increasing traffic demand
TORONTO, March 13,
2025 /PRNewswire/ -- Public Sector Pension Investment
Board (PSP Investments), one of Canada's largest pension investors, today
announced that it has entered into agreements to acquire a
strategic interest in 407 Express Toll Route (407 ETR), an
all-electronic, barrier-free, toll highway spanning 108km in the
Greater Toronto Area, from
investment management organization Canada Pension Plan Investment
Board (CPP Investments).
PSP Investments will add this 407 ETR investment to its global
portfolio of road assets through the acquisition of a 7.51% stake
for a purchase price comprised of approximately $2.39 billion payable at closing, and a deferred
payment to be made up to 18 months after closing.
Simultaneously, engineering services and nuclear company
AtkinsRéalis will enter into agreements to sell its remaining 6.76%
stake in 407 ETR to CPP Investments and Ferrovial, a global
infrastructure company. CPP Investments expects to acquire a 1.70%
interest in 407 ETR from AtkinsRéalis, on the same basis as the
deferred portion of the purchase price paid by PSP Investments. Net
proceeds to CPP Investments from all of the applicable transactions
are expected to be approximately $2.39
billion for a net 5.81% interest sold after closing.
Following completion of these transactions, ownership control of
407 ETR is expected to be attributed as follows: Ferrovial at
48.29%, CPP Investments and other institutional investors at
44.20%, and PSP Investments at 7.51%. AtkinsRéalis will cease to be
a shareholder.
"We are pleased to join CPP Investments and Ferrovial in the 407
ETR ownership group. PSP Investments has deep expertise in the
transportation sector and will support the long-term stability and
reliability of this critical road that services more than 3 million
Canadians each week," said Sandiren Curthan, Managing Director
and Global Head of Infrastructure Investments, PSP Investments.
"Our investment in 407 ETR represents our largest infrastructure
commitment in Canada to date and
exemplifies our broader infrastructure strategy, which is focused
on investing in high-quality, essential global infrastructure
assets in transportation, communications and energy, enabling us to
deliver on our mission and mandate."
"This transaction enables CPP Investments to optimize returns
for CPP contributors and beneficiaries while building stronger ties
with two valued partners and continuing to own a significant stake
in a high-quality business," said James
Bryce, Managing Director, Head of Infrastructure, CPP
Investments. "We look forward to partnering with PSP
Investments, Ferrovial and the management team, as the 407 ETR
continues to deliver excellent service to the millions of
individual and business customers who use the highway."
"We are pleased to have PSP Investments join Ferrovial and CPP
Investments as a shareholder in 407 ETR. We share a long-term
commitment to this high-quality asset and a track record of
successful collaboration with all our partners. We will continue to
serve the citizens of the Greater Toronto
Area and improve mobility and growth in the
region," said Ignacio
Madridejos, CEO of Ferrovial.
The transactions are subject to customary closing conditions and
adjustments.
About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is
one of Canada's largest pension investors
with $264.9 billion of net assets under management as
of March 31, 2024. It manages a diversified global portfolio
composed of investments in capital markets, private equity, real
estate, infrastructure, natural resources, and credit investments.
Established in 1999, PSP Investments manages and invests amounts
transferred to it by the Government of Canada for the
pension plans of the federal public service, the Canadian Forces,
the Royal Canadian Mounted Police and the Reserve Force.
Headquartered in Ottawa, PSP Investments has its principal
business office in Montréal and offices in New
York, London and Hong Kong. For more information,
visit investpsp.com or follow us
on LinkedIn.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a
professional investment management organization that manages the
Fund in the best interest of the more than 22 million
contributors and beneficiaries of the Canada Pension Plan. In order
to build diversified portfolios of assets, investments are made
around the world in public equities, private equities, real estate,
infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York
City, San Francisco, São
Paulo and Sydney, CPP Investments
is governed and managed independently of the Canada Pension Plan
and at arm's length from governments. At December 31, 2024, the Fund totalled C$699.6 billion. For more information, please
visit www.cppinvestments.com or follow us
on LinkedIn, Instagram or on
X @CPPInvestments.
About Ferrovial
Ferrovial is one of the world's leading infrastructure
companies. The Company operates in more than 15 countries and has a
workforce of over 25,000 worldwide. Ferrovial is triple listed on
Euronext Amsterdam, the Spanish Stock Exchanges and Nasdaq and is a
member of Spain's blue-chip IBEX
35 index. It is also included in globally recognized sustainability
indices such as the Dow Jones Best in Class Index (former Dow Jones
Sustainability Index), and all its operations are conducted in
compliance with the principles of the UN Global Compact, which the
Company adopted in 2002.
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