CPPIB triples stake in Peruvian natural gas transporter for US$607 million

TORONTO – The Canada Pension Plan Investment Board has more than tripled its stake in the largest natural gas transporter in Peru.

The pension fund says it paid US$607 million to buy an additional 23.6 per cent equity stake in Transportadora de Gas del Peru SA (TGP).

The agreement will help increase its holdings to 36.8 per cent, when factoring in two other transactions it has negotiated for smaller stakes of TGP, it said. The CPPIB bought an initial 10.4 per cent stake in January.

The CPPIB, which is one of Canada’s biggest pension funds, made the latest acquisition from Tecpetrol International SA, Tecpetrol Internacional SLU and Tecpetrol SA.

CPPIB also said it expects to buy an additional 2.4 per cent stake in TGP from Enagas Internacional SL and a 0.4 per cent interest from Corporacion Financiera de Inversiones. Both transactions are pending certain approvals.

The transaction Monday also included the purchase of Compania Operadora de Gas del Amazonas (COGA), which operates the natural gas company.

In a separate transaction, the CPPIB said it has sold a 51 per cent stake in COGA to engineering and construction firm Grana y Montero and a 30 per cent stake to Enagas for an unspecified price.

TGP is Peru’s largest gas exporter and one of the largest in Latin America.

“CPPIB’s significant ownership position demonstrates our belief in TGP’s potential and our confidence in management’s proven track record,” said Andre Bourbonnais, senior vice-president of private investments at the pension fund.

“TGP fits well with our infrastructure portfolio and is in line with our strategy to invest in key sectors in Latin America.”

Note to readers: This is a corrected story. An earlier version incorrectly described CPPIB’s sale of a portion of natural gas company Compania Operadora de Gas del Amazonas.