The Canada Pension Plan Investment Board (CPPIB), along with a consortium including Allianz Capital Partners GmbH (Allianz) and the Abu Dhabi Investment Authority (ADIA) has entered into an agreement to acquire a 24.1% stake in the Gassled Joint Venture (Gassled) from Statoil ASA.

“We are pleased to be part of the Consortium investing in Gassled, which is a good fit with our infrastructure portfolio and investment strategy. As a long-term investor, we look for infrastructure assets that will deliver stable returns over a long time horizon and Gassled fits this criteria,” said Andre Bourbonnais, senior vice-president, private investments, with CPPIB.

Gassled is an unincorporated joint venture that owns the majority of the gas transport infrastructure on the Norwegian Continental Shelf. Gassled is expected to benefit from the growth in European gas demand and Norway’s long-term position as a key supplier of gas to the continent.

The buyer is Solveig Gas Norway AS, a holding company that is approximately 45% owned CPPIB, 30% by Allianz and 25% by Infinity Investments SA, a wholly owned subsidiary of ADIA. The total value of the transaction is NOK 17.35 billion or approximately C$3.18 billion, to which CPPIB will commit an equity investment of NOK 4.02 billion or approximately C$738 million.

Completion of the transaction is subject to certain regulatory approvals including by the Norwegian Ministry of Petroleum and Energy.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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