The Ontario Teachers’ Pension Plan and the Public Sector Pension Investment Board are part of a consortium making a binding offer to buy an Australian infrastructure investment company.
The deal, which also includes the Toronto-based Kohlberg Kravis Roberts and Co., values the Spark Infrastructure Group at about AU$ 5.2 billion ($4.8 billion). It has already received unanimous approval from the company’s board. However, to be finalized, it will require the approval of security holders, which is expected at a meeting toward the end of 2021.
Under the terms proposed by the consortium, Spark Infrastructure Group’s security holders will receive an additional cash consideration should the terms of the deal not be implemented by Feb. 15, 2022. An additional cent-per-security consideration will be added for the first fives months that pass without the full implementation of the deal. From that point, the consideration will compound on a daily basis.
Negotiations between the board and the consortium were first announced on July 15, 2021. Following the finalization of the terms of the deal, Spark Infrastructure Group’s board agreed for the consortium to conduct a due diligence check, which has now concluded.