Caisse-backed partnership acquires U.S. gas pipeline from Morgan Stanley

The Caisse de dépôt et placement du Québec has partnered with GE Energy Financial Services to acquire Southern Star Central Corp, which owns Southern Star Central Gas Pipeline Inc, a natural gas pipeline system in the United States. The acquisition’s value was not disclosed. The seller in the transaction was Morgan Stanley Infrastructure, which in March sold Montreal Gateway Terminals to an investor group led by Fiera Axium Infrastructure. Morgan Stanley invested in Southern Star Central in 2010.

PRESS RELEASE

La Caisse enters partnership to acquire Southern Star Central Corp.

MONTREAL, May 1, 2015 /CNW Telbec/ – La Caisse de dépôt et placement du Québec (“CDPQ”) has partnered with GE Unit (NYSE: GE) GE Energy Financial Services to jointly acquire Southern Star Central Corporation from Morgan Stanley Infrastructure. The company has full ownership of Southern Star Central Gas Pipeline Inc. (“SSCGP”), which operates a FERC (Federal Energy Regulatory Commission)-regulated natural gas pipeline system in the United States. Financial details of the transaction have not been disclosed.

SSCGP is a well-established company. Founded in 1904, it owns and operates a natural gas transmission and storage network. The pipeline network extends over more than 9,300 kilometers across eight states, serving mainly the Kansas and Missouri markets.

“For la Caisse, this is a high-quality asset that is strategically well-located. The integration of its infrastructure in the local distribution companies makes SSCGP a leading company in its market,” added Macky Tall, Senior Vice-President, Infrastructure, CDPQ. “We are very pleased to join forces with GE Energy Financial Services, a strategic, quality partner with in-depth knowledge of this sector and of the company. The investment is fully aligned with our infrastructure investment strategy, because it will generate for la Caisse and its clients, stable and predictable returns over the long term.”

ABOUT LA CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC

La Caisse de dépôt et placement du Québec is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2014, it held $226 billion in net assets. As one of Canada’s leading institutional fund managers, la Caisse invests globally in major financial markets, private equity, infrastructure and real estate. For more information: www.lacaisse.com.

SOURCE Caisse de dépôt et placement du Québec
For further information: Maxime Chagnon, Senior Director, Media Relations, 514 847-5493, mchagnon@lacaisse.com; Twitter : @LaCDPQ; Website: www.lacaisse.com

Photo courtesy of Southern Star Central Corp