CPPIB fund manager invests US$250M in U.K-based financial information company

TORONTO – Canada Pension Plan Investment Board has decided to invest US$250 million to buy a six per cent stake in Markit Ltd. as part of the U.K.-based financial information company’s initial public share offering.

The Toronto-based pension fund manager will have the right to nominate one director to Markit’s board as long as it maintains a certain level of ownership in the company.

CPPIB had initially indicated it would be prepared to invest up to US$450 million but that was a non-binding expression of interest, subject to negotiation.

It announced Thursday that it will buy 10.4 million common shares of Markit for US$24 per share.

Among other things, Markit produces monthly reports on manufacturing data in various countries and regions including China, Canada and the European Union.

According to its IPO filing, Markit generated US$947.9 of revenue in 2013 and US$259.4 million in the first three months of 2014.

The CPPIB, one of Canada’s biggest pension funds, invests money not currently needed by the Canada Pension Plan to pay benefits.

As of March 21, the CPP Fund had assets valued at C$219.1 billion.