Private Equity
Reliance Infrastructure Ltd (RInfra) has agreed to sell a 49 percent equity stake in the company's Indian power distribution operation to Canadian pension fund manager Public Sector Pension Investment Board (PSP Investments). No financial terms were disclosed. The operation is to be spun out into a special purpose vehicle called Reliance Energy, with RInfra holding the controlling interest. Reliance distributes power to nearly 3 million residential, industrial and commercial consumers in the suburbs of Mumbai. RInfra, an affiliate of the Reliance Group, said it will use the transaction's proceeds to reduce debt.
3 min read · 16 November 2015
Dutch pension fund manager APG Asset Management and Canada Pension Plan Investment Board signed an agreement to own and develop logistics real estate in South Korea with warehousing developer e-Shang, with planned initial investments of US$500 million, Reuters reported. E-Shang is partially backed by U.S. private equity firm Warburg Pincus.
1 min read · 16 November 2015
Three of Canada's largest pension fund managers have agreed to acquire Skyway Concession Company LLC, which operates the Chicago Skyway toll road, for US$2.8 billion, Reuters reported. Canada Pension Plan Investment Board, Ontario Municipal Empoyees Retirement System and Ontario Teachers' Pension Plan will each own a 33.33 percent interest in the asset.
2 min read · 13 November 2015
Canadian private equity firm Clairvest Group recently realized its investment in Linen King LLC, a U.S.-based textile rental business that provides commercial laundry services to the healthcare and hospitality industries. The nature of the exit was not specified by Clairvest, which noted the event in its fiscal 2016 second quarter results. The firm invested US$8.6 million in Linen King in October 2011. Clairvest also exited Casino New Brunswick as a result of last month's sale to Great Canadian Gaming Corp.
4 min read · 13 November 2015
Midway Gold Corp has agreed to sell its 30 percent interest in a Spring Valley joint venture to Waterton Global Resource Management, a Canadian mining-focused private equity firm. The deal, which is expected to close by December 15, will reflect a minimum price of US$25 million. Waterton agreed to buy the other 70 percent of the joint venture from Barrick Gold Corp this week. The Spring Valley deposit is a large, porphyry hosted gold resource located in the Spring Valley Mining District of Pershing County, Nevada. Waterton already has a substantial portfolio of assets in the state.
5 min read · 13 November 2015
Canada Pension Plan Investment Board, one of the world's biggest pension funds, reported gross investment returns of 1.6 percent in its fiscal second quarter on Thursday, driven largely by a boost in net investment income, Reuters reported. CPPIB said it ended the period on September 30 with net assets of $272.9 billion.
2 min read · 12 November 2015
Canadian online investment platform NexusCrowd has collaborated with Downing Street Realty Partners on a $12 million real estate project in the Greater Toronto Area (GTA). Downing Street, a Canadian real estate investment manager and merchant bank, is the lead investor in the project, which will focus on redeveloping three industrial properties in the region. NexusCrowd is raising $500,000 from accredited investors for the initiative. In September, NexusCrowd completed its first transaction, which involved a $100 million retail mall development in the GTA.
4 min read · 12 November 2015
Barrick Gold Corp said it will sell its stake in four non-core assets in Nevada for US$720 million, putting the Canadian mining business firmly on track to meet its 2015 debt-reduction target amid a multi-year slump in gold prices, Reuters reported. One of the buyers of the Nevada assets is Canadian mining-focused private equity firm Waterton Global Resource Management.
2 min read · 12 November 2015
Mark Anthony Group Inc has agreed to sell certain beer and cider brand rights and other assets to Belgium's Anheuser-Busch InBev (AB InBev). The brands, all created by Vancouver-based Mark Anthony, include Mike's Hard Lemonade, Palm Bay, Okanagan Premium Ciders and Stanley Park Beers. Mark Anthony did not disclose the deal's financial terms; however, Reuters reports AB InBev agreed to pay US$350 million. Upon the close of the deal in the coming months, Mark Anthony said it plans to focus on its wine and spirits business. AB InBev has been a portfolio investment of U.S. and Brazilian private equity firm 3G Capital since 1989.
3 min read · 11 November 2015
New Flyer Industries Inc (TSX: NFI) has agreed to buy Motor Coach Industries International Inc (MCI), a manufacturer of intercity coaches in North America. New Flyer agreed to pay US$455 million ($603 million) in cash to MCI's current owner U.S. private equity firm KPS Capital Partners. The deal is expected to close by the end of the year. Winnipeg-based New Flyer, a maker of heavy-duty transit buses, said the acquisition will provide it with growth and diversification opportunities, as well as potential synergies and new sources of collaboration. KPS bought Des Plaines, Illinois-based MCI in 2010. New Flyer was backed by Harvest Partners between 2004 and 2008.
9 min read · 11 November 2015
