The Canada Pension Plan Investment Board and the Alberta Investment Management Corp. are together investing $2.4 billion in the Australian digital infrastructure company BAI Communications Pty. Ltd.
The funds have been earmarked to support BAI’s global growth strategy and acquisitions. BAI recently announced a partnership agreement with Transport for London to deliver high-speed mobile coverage across the London Underground by the end of 2024, as well as a full-fibre network in the British capitol. In May, it acquired the California-based Mobilitie Management LLC, then the largest privately held wireless telecommunications infrastructure company in the U.S.
Prior to the investment, the CPPIB owned 86 percent of the company, with the AIMCo owning a minority stake. According to Scott Lawrence, managing director and head of infrastructure for the CPPIB, BAI’s expansion from a domestic player in Australia to a global provider of digital infrastructure makes the company an attractive investment.
“The acquisition of Mobilitie and establishment of a long-term partnership with TFL represent attractive opportunities for CPP Investments to increase its financial commitment to BAI and the digital infrastructure sector more broadly and, in doing so, generate long-term sustainable returns for our contributors and beneficiaries.”
Ben Hawkins, senior vice-president of infrastructure and renewable resources at the AIMCo, said these initiatives capitalize on the enhanced wireless connectivity opportunity in the U.S., the U.K. and around the globe. “We are pleased to work with CPP Investments in increasing our commitment to BAI in support a range of growth initiatives.”
In other investment news, the British Columbia Investment Management Corp. is signing a definitive agreement to invest in PS Logistics, an Alabama-based logistics provider for flatbed truck transportation.
PS Logistics provides third-party logistics managed transportation, warehousing and supply chain services to its customers.
According to Aaron Papps, senior portfolio manager at the BCI, PS Logistics has a long track record of creating value for its shareholders. “The continued growth and success of PS Logistics will provide compelling risk-adjusted returns for our pension plan and insurance fund clients.”
While the exact terms of the agreement haven’t been publicly disclosed, it’s expected to be completed in the third quarter of 2021.