Québec’s Caisse de dépôt Invests C$400M in MEG Energy

Pension fund manager Caisse de dépôt et placement du Québec announced it has made a private placement in Calgary, Alberta-based oil sands developer MEG Energy Corp. The investment, totaling C$400 million, is expected to close before the end of this year. MEG Energy was formerly backed by private equity investors KERN Partners and Warburg Pincus. The company completed a C$700 million IPO in 2010.


The Caisse de dépôt et placement du Québec announces a $400-million private placement common share financing with MEG Energy

Montréal, December 10, 2012 – The Caisse de dépôt et placement du Québec has just entered into a binding agreement to purchase, on a private placement basis, $400-million of common shares of MEG Energy Corp. (“MEG”), a Canadian company. This private placement is part of the issuance of share capital totalling $800 million announced earlier today by MEG. The closing of the private placement is expected to occur on or about December 28, 2012.

“Energy is a major sector in the Canadian economy, and our investments in the best companies in this industry enable us to generate attractive returns for our depositors,” said Normand Provost, Executive Vice-President, Private Equity at the Caisse.

The Caisse has had an equity stake in MEG Energy since 2004. Following this transaction, its interest in the company will total around 9% of the common shares outstanding.

The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2011, it held $159.0 billion in net assets. As one of Canada’s leading institutional fund managers, the Caisse invests in major financial markets, private equity and real estate. For more information: www.lacaisse.com.

Photo courtesy of Shutterstock.

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