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The Public Sector Pension Investment Board is entering a definitive agreement with Loral Space & Communications Inc. and Telesat Canada to combine the two telecommunications businesses into a new Canadian public company.

The PSP will own a 36.7 per cent interest in New Telesat as a result of the merger, expected to close in the second or third quarter of 2021, according to a press release.

Loral and Telesat will also make a $7 million payment to the PSP, as well as a payment to adjust for the value of Loral’s non–Telesat assets and liabilities at the time of the transaction’s closing.

Read: PSP investing in real estate advisory and tech firm

In other investment news, the Canada Pension Plan Investment Board is investing US$100 million in Hutchison China MediTech Ltd., a biopharmaceutical company.

The investment will fund ongoing research and clinical development and support the further growth of Chi-Med’s commercialization capabilities both in China and globally, according to a press release.

“This placement aligns with the CPPIB’s focus on providing strategic, long-term capital to industry leading companies where we can participate in the future success of the business and help create greater value through ongoing partnership,” said Agus Tandiono, managing director and head of fundamental equities for Asia at the CPPIB, in the release. “We look forward to supporting Chi-Med’s work on innovation in oncology treatment.”

Read: Canadian pension portfolio exposure to China inching higher

Copyright © 2021 Transcontinental Media G.P. Originally published on benefitscanada.com

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