Canadian Manufacturing

CPPIB triples stake in Peruvian pipeline company, becomes largest stakeholder

Now owns 36.8 per cent of Transportadora de Gas del Perú S.A., country's largest natural gas transporter



TORONTO—The investment arm of the Canada Pension Plan (CPP) has increased its stake in a Peruvian pipeline firm to more than 36 per cent, making it the company’s largest stakeholder.

The Canada Pension Plan Investment Board (CPPIB) said it has acquired an additional 23.6 per cent interest in Transportadora de Gas del Perú S.A. (TgP), the largest natural gas transporter in Peru.

The move will see its stake in the company grow to 36.8 per cent after the board bought a 10.4 per cent interest in TgP in January for about US$200-million.

According to the CPPIB, it also bought 100 per cent of TgP operator Compañía Operadora de Gas del Amazonas (COGA).

The deal for COGA and the additional stake in TgP cost the board US$607-million.

“CPPIB’s significant ownership position demonstrates our belief in TgP’s potential and our confidence in management’s proven track record,” CPPIB senior vice-president of private investments André Bourbonnais said in a statement.

“We believe that CPPIB’s investment in COGA, combined with the expertise of our partners, will contribute to TgP’s continued success.”

In separate transactions, the CPPIB has agreed to sell a 51 per cent interest in COGA to Graña y Montero (GyM), and another 30 per cent to Enagás.

The board will retain a 19 per cent interest in COGA.

The CPPIB invests funds not needed by the CPP to pay benefits for its roughly 18 million current and retired contributors.

It’s net assets totalled $201.5-billion as of Dec. 31, 2013, up from $192.8-billion in the previous quarter.

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