Canada Pension Plan Investment Board (CPPIB) has bought 10.4 million common shares of Markit Ltd as part of the company’s initial public offering. Valued at US$24.00 per share, the purchase represents an investment by CPPIB of US$250 million and an ownership interest of approximately 6 percent. Based in London, Markit is a diversified provider of financial information services led by Canadian-born executive Lance Uggla. It is backed by U.S. private equity firm General Atlantic, Singapore investment firm Temasek Holdings and other investors. The Markit IPO is reported by the Wall Street Journal to have raised about US$1.2 billion.
Canada Pension Plan Investment Board to Invest US$250 Million in Markit Ltd.
TORONTO, ONTARIO–(Marketwired – Jun 19, 2014) – Canada Pension Plan Investment Board (CPPIB) announced today that it will acquire 10.4 million common shares of Markit Ltd. (Markit) at a price of US$24.00 per common share as part of Markit’s initial public offering, which is expected to close on or about June 24, 2014. CPPIB’s total investment will be US$250 million representing an approximate 6% ownership interest.
CPPIB will have the right to nominate one director for appointment to Markit’s Board of Directors.
Founded in 2003, Markit is a global diversified provider of financial information services with 22 offices in 10 countries. Markit’s products enhance transparency, reduce risk and improve operational efficiency in the financial markets. Its global customers include banks, asset managers, hedge funds, central banks, regulators and insurance companies.
“We are pleased to become a cornerstone investor in Markit and we see this investment as the start of a long-term partnership with Markit’s experienced management team and Board,” said Scott Lawrence, Vice-President & Head of Relationship Investments, CPPIB. “Markit is a global leader in providing financial information services with a highly customer-centric approach and strong growth opportunities.
“This investment fits well with Relationship Investments’ strategy to provide strategic, long-term capital to leading public companies, like Markit, where CPPIB can participate in the future success of the company and help create greater value through an ongoing partnership,” said Mr. Lawrence.
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2014, the CPP Fund totalled C$219.1 billion. For more information about CPPIB, please visit www.cppib.com.
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