The Canadian Pension Plan Investment Board (CPPIB) has made a formal offer to acquire all of Macquarie Communications Infrastructure Group's (MCIG) securities for $1.37 billion.
The offer represented a value of $2.50 per MCIG stapled security, the CPPIB said in a statement on 30 March.
"This transaction enables us to acquire a diversified portfolio of high-quality infrastructure assets with stable cash flows at an attractive valuation," CPPIB senior vice-president of private investments Mark Wiseman said.
"Current economic conditions provide a unique set of opportunities for investors with liquidity and a long investment horizon like the CPP Investment Board."
The deal was unanimously recommended by MCIG's independent directors and would be subject to the approval of MCIG's stapled security holders, CPPIB said.
CPPIB managed $124.7 billion in assets at the end of 2008.
In recent years, the Toronto-based pension fund's management had elected to pursue value-added returns by expanding the range of investment programs to include private equity, real estate and infrastructure, the CPPIB said on its website.
CPPIB's asset mix stood at 42.2 per cent in public equities, 15.3 per cent in private equities, 27.8 per cent in fixed income, 7.1 per cent in real estate, 4.2 per cent in inflation-linked bonds and 3.4 per cent in infrastructure at 31 December 2008.
