CPPIB and Hermes Invest in ABP

Canada Pension Plan Investment Board (CPPIB) and Hermes Infrastructure have signed an agreement to invest approximately £1.6 billion (C$2.9 billion) in Associated British Ports (ABP).

According to the agreement, CPPIB and Hermes Infrastructure will acquire at least 30% stake in ABP and may acquire a further 3.33% subject to pre-emption rights.

The transaction is conditional on customary anti-trust clearances and is expected to close in summer 2015.

ABP is the U.K.’s leading ports group; it owns and operates 21 ports in England, Scotland, and Wales. ABP’s business as a landlord port owner and operator is underpinned by a diverse cargo base, long-term contracts with a broad mix of blue chip customers and high quality assets.