The Public Sector Pension Investment Board (PSP Investments), one of Canada's largest pension investors, has agreed to acquire a strategic interest in 407 Express Toll Route (407 ETR), an all-electronic, toll highway spanning 108 kilometers (67 miles) in the Greater Toronto Area, from the Canada Pension Plan Investment Board (CPP Investments).
PSP Investments is adding this investment to its global portfolio of road assets through the acquisition of a 7.51 percent stake for a purchase price of approximately C$2.39 billion ($1.7 billion) payable at closing and a deferred payment to be made up to 18 months after closing.
Simultaneously, AtkinsRéalis, an engineering services and nuclear company, will sell its remaining 6.76 percent stake in 407 ETR to CPP Investments and Ferrovial, a global infrastructure company. CPP Investments expects to acquire a 1.70 percent interest in 407 ETR from AtkinsRéalis, on the same basis as the deferred portion of the purchase price paid
