BUSINESS

Caisse invests $268 million in Mexican infrastructure joint venture

04/13/2015 05:37 EDT | Updated 06/19/2015 08:59 EDT
MONTREAL - The Caisse de depot is teaming with Mexico's largest infrastructure company, Empresas ICA, by investing $267.7 million in a joint venture that will initially operate four highway highway toll systems.

The Quebec pension fund manager, which is seeking to expand its international investments, will own 49 per cent of the new entity through the investment.

Empresas, a construction firm that builds and owns infrastructure assets including airports, toll roads, water systems and real estate, will see its ownership shrink to 51 per cent while using the proceeds of the Caisse investment to pay down debt.

The assets include a tunnel in Acapulco, the Mayab toll road, the Rio Verde-Ciudad Valles Highway and La Piedad bypass.

The transaction, expected to close in the second quarter, is subject to standard conditions and approval of the Mexican government.

The Caisse has a large stake in Montreal-based SNC-Lavalin (TSX:SNC), which also builds and owns stakes in infrastructure investments including the Highway 407 electronic toll road in the Toronto area.