Canadian Investment Groups Interested in TransCanada Pipeline Stake

Canadian Investment Groups Interested in TransCanada Pipeline Stake

At least two Canadian investment groups are planning to submit offers this week for a minority stake in TransCanada Corporation’s Mexican pipeline business that is valued at approximately $2 billion.

The interested investors, including Canada Pension Plan Investment Board and Public Sector Pension Investment Board, have formed a consortium to make a bid of as much as 49.9 percent of the pipeline business. CKD Infraestructura Mexico SA, Caisee de Depot et Placement du Quebec’s new Mexican joint venture, is also planning to make an offer for the stake.

TransCanada is seeking investors to take a minority stake in its Mexico natural gas pipeline business, according to spokesman for TransCanada, Mark Cooper.

Mexico represents a unique opportunity for investment groups as the Mexican government recently implemented a four-year, $411 billion plan for infrastructure investments targeting energy, transportation, and other projects.

TransCanada is planning to sell its minority stake in the Mexican pipeline in order to assist in financing its recent $10.2 billion purchase of Columbia Pipeline Group.

Source:
Bloomberg