The CPP Investment Board (CPPIB) is purchasing a minority stake in Calgary’s Torc Oil & Gas.
It will invest $170 million to buy subscription receipts, which will give the CPPIB a 25% interest in the company. It will also be entitled to hold two spots on the board of directors as long as the stake remains above 20%.
Scott Lawrence, vice-president and head of relationship investments with the CPPIB, believes the purchase will create an opportunity for a compelling total return on its investment.
“CPPIB’s investment aligns with our relationship investments strategy to provide strategic, long-term capital to leading public companies where CPPIB can participate in the future success of the issuer and help create greater value through ongoing partnership with the company.”
The investment by the CPPIB is subject to approval by a majority of Torc’s shareholders. A special meeting is expected to be scheduled for early September.
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