June 6, 2011
Gassled is one of the world’s largest offshore natural gas transportation networks
Toronto, ON (June 6, 2011) – The Canada Pension Plan Investment Board (CPPIB) announced today that a consortium formed by CPPIB, Allianz Capital Partners GmbH (Allianz), and the Abu Dhabi Investment Authority (ADIA, and together the Consortium) has entered into an agreement to acquire a 24.1% stake in the Gassled Joint Venture (Gassled) from Statoil ASA.
The buyer is Solveig Gas Norway AS, a holding company that is approximately 45% owned by Canada Pension Plan Investment Board, 30% by Allianz Capital Partners, a subsidiary of Allianz SE, and 25% by Infinity Investments SA, a wholly owned subsidiary of the Abu Dhabi Investment Authority. 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.
André Bourbonnais, Senior Vice-President, Private Investments for CPPIB, said, “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. Norway is known for having a strong economy and a transparent regulatory environment, which is attractive to investors such as CPPIB.”
“Gassled represents a highly promising investment for CPPIB, and an opportunity to enter into a long-term partnership with like-minded investors. We look forward to becoming an important strategic partner in the future development of the Gassled network,” said Mr. Bourbonnais.
Established in 2003, Gassled is an unincorporated joint venture which owns the majority of the gas transport infrastructure on the Norwegian Continental Shelf. It is a core infrastructure asset and a strategic asset in the Northwestern Europe energy landscape. 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 Europe. Completion of the transaction is subject to certain regulatory approvals including by the Norwegian Ministry of Petroleum and Energy.
About Canada Pension Plan Investment Board
The Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPPIB invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, the CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2011, the CPP Fund totaled $148.2 billion. For more information about CPPIB, please visit www.cppib.ca.
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