CPPIB ups 407 International stake with close of $3.25 bln deal
Canada Pension Plan Investment Board (CPPIB) has closed its acquisition of a 10.01 percent stake in 407 International Inc, a Woodbridge, Ontario-based holder of a concession over 407 Express Toll Route (407 ETR), from SNC-Lavalin Group Inc (TSX: SNC). The deal, announced earlier this month, is valued at $3.25 billion. Of the total, $3 billion is payable on closing, with the rest to be paid over 10 years if certain financial targets are met. CPPIB first invested in 407 ETR in 2010, acquiring a 40 percent holding. The acquisition from SNC Lavalin increases the interest to 50.01 percent. SNC-Lavalin originally agreed to sell the 10.01 percent stake to OMERS Infrastructure. CPPIB exercised its right of first refusal when the agreement was cancelled in May.
