The Canada Pension Plan Investment Board is joining an investment group acquiring Italian telecommunications provider NetCo.
The investment organization will acquire a 17.5 per cent stake of the company for up to $2.9 billion. The deal, which also includes Kohlberg Kravis Roberts and Co. (a subsidiary of the Abu Dhabi Investment Authority), Italian infrastructure fund F2i and the Italy’s Ministry of Economy and Finance, values NetCo at roughly $27.5 billion. The transaction is expected to close in the summer of 2024 subject to customary conditions.
In a press release, James Bryce, managing director and global head of infrastructure at the CPPIB, said this is the first of several infrastructure investments in Italy. “Our investment alongside these key partners with a shared long-term vision will help deliver high-quality digital infrastructure across Italy as well as generating long-term risk-adjusted returns for the fund.”
Read: CPPIB returns 3.4% in Q3 2024, driven by global equity, fixed income assets
In other news, the CPPIB and the Alberta Investment Management Corp. are reinvesting in a U.S.-based telecommunications infrastructure provider.
Boldyn Networks will use the new funds from the two investment organizations, as well as Manulife Investment Management which invested in the company back in 2021, to complete its planned acquisition of Apogee Telecom, according to a press release. The CPPIB is the majority shareholder in Boldyn with an 86 per cent stake, while the AIMCo holds 10 per cent. The financial details of the transaction weren’t disclosed.
“As demand for connectivity and data-rich content rises, Boldyn is well placed to provide advanced, high-performing network services as a global player in the wireless infrastructure sector,” said James Bryce, managing director and head of infrastructure at the CPPIB, in the release.
Read: AIMCo, CPPIB reinvesting in telecom network; CPPIB expanding share in U.K. mall
Meanwhile, the Caisse de dépôt et placement du Québec will be joined by private equity investor General Atlantic as a stakeholder in global travel industry ancillary provider Plusgrade. As part of the transaction, General Atlantic will take over as Novacap exits its own stake in Plusgrade. The financial terms of the transaction weren’t disclosed.
“We look forward to continuing, together with this new experienced partner, the creation of value in a flagship company for ancillary income solutions for the travel sector, which will be beneficial for our depositors,” said Kim Thomassin, executive vice-president and head of Quebec at the Caisse, in the release.
Read: CPPIB invests in electric vehicle company, Caisse in travel tech
The Caisse is also providing a loan to Norda Stelo to help it complete a strategic acquisition deal for geology and mining engineering company InnovExplo.
According to a press release, the deal is motivated by an increasing need for critical minerals as the ongoing trend of renewable energies. The investment organization first invested in the Quebec-based engineering firm last year. Financial terms of the transaction weren’t disclosed.
“[The Caisse] is proud to be involved in this new acquisition and to continue supporting the development of this Quebec-based company with international ambitions,” said Thomassin, in the release.