Teachers' agrees to acquire majority stake in Australian telecom companies
TORONTO, March 27, 2013
TORONTO, March 27, 2013 /PRNewswire/ - Ontario Teachers' Pension Plan
(Teachers') today announced an agreement to acquire 70% of three Australian
telecommunications companies from Leighton Holdings Limited (Leighton).
The acquisition of Nextgen Networks, Metronode and Infoplex values 100% of
these businesses at A$885 million, subject to certain adjustments. Leighton,
based in Sydney, will retain a 30% interest in the companies. The transaction
is subject to various approvals (including Australian Foreign Investment
Review Board) and is expected to close in mid-2013.
Nextgen manages high-speed, carrier-grade fibre network services; Metronode
provides data centre and related value-added services; and Infoplex provides
cloud and ICT services. These businesses will be brought together under a new
ownership structure following deal completion, and will remain headquartered
in Australia with existing management remaining largely in place.
This transaction is led by Teachers' Long-Term Equities group, which focuses
on direct investments with steady cash flow, growth potential over a long-term
horizon and a low to moderate level of risk.
"We are excited about moving ahead with Leighton. The businesses are a good
fit with our portfolio and investment mandate," said Lee Sienna,
Vice-President, Long-Term Equities. "Together they provide solid revenue
streams and growth upside. We look forward to working with the existing
management team to build on its strong track record."
With $117.1 billion in assets as of December 31, 2011, the Ontario Teachers'
Pension Plan is the largest single-profession pension plan in Canada. An
independent organization, it invests the pension fund's assets and administers
the pensions of 300,000 active and retired teachers in Ontario. For more
information visit www.otpp.com
SOURCE Ontario Teachers' Pension Plan
Director, Communications and Media Relations
Ontario Teachers' Pension Plan
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