Canadian pension fund manager OPTrust, in partnership with Netherlands-based PGGM and U.K.-based Universities Superannuation Scheme, recently agreed to buy all of the shares of Globalvia Infraestructuras SA. The deal is priced at €420 million ($606 million). Headquartered in Madrid, Globalvia is a concession management business that oversees 29 projects, most of them focused on highways and railways. The sellers in the transaction are Fomento de Construcciones y Contratas and Bankia. OPTrust and the two other pension funds have backed Globalvia for several years.
OPSEU Pension Trust (OPTRUST), PGGM, and Universities Supperannuation Scheme LTD (USS) reach an agreement to acquire 100% of Globalvia
On 23 October 2015, OPSEU Pension Trust (OPTrust), PGGM, and Universities Superannuation Scheme Ltd (USS) (together, the consortium) reached an agreement with Fomento de Construcciones y Contratas (FCC) and Bankia (together, the sellers) to acquire 100% of their shares in Globalvia Infraestructuras, S.A. for a figure of up to €420 million.
The agreement consists of an initial payment of €166 million and another deferred payment of up to a maximum €254 million. The transaction is subject to a series of conditions, including certain third party approvals and authorizations.
The consortium had previously notified the sellers of their intention to exercise their right, as holders of a €750 million convertible loan, to match the offer that the sellers had received from Khazanah Nasional Berhad.
Globalvia is one of the world’s leading infrastructure concession management companies, ranked among the top companies in terms of number of concessions. The company, established in 2007, manages 29 projects in seven different countries, principally focusing on highways and railways. Globalvia’s target markets are OECD countries, with special emphasis on Spain, other European Union countries, and North America.
A spokesperson for the consortium said: “We are delighted to acquire 100% of Globalvia on these terms. The transaction represents the next logical phase of our investment and we look forward to growing the business in the future.”
The consortium has been advised by Deutsche Bank, as sole financial advisor, and Allen & Overy as legal counsel.
This operation closes FCC’s process for the sale of non strategic assets which were included in the restructuring plan launched in 2013 and completed earlier this year.
For Bankia the transaction is yet another step towards completing the Strategic Plan 2012-2015 for the BFA-Bankia Group, which involves divesting the company’s holdings portfolio. This transaction, which is seen as positive for the bank in terms of liquidity and capital, could make both Bankia and FCC obtain up to €210 milion.
With assets of $17.5 billion, the OPTrust invests and manages one of Canada’s largest pension funds and administers the OPSEU Pension Plan, a defined benefit plan with over 86,000 members and retirees. OPTrust was established to give plan members and the Government of Ontario an equal voice in the administration of the Plan and the investment of its assets, through joint trusteeship. OPTrust is governed by a 10-member Board of Trustees, five of whom are appointed by OPSEU and five by the Government of Ontario.
PGGM is a cooperative Dutch pension fund service provider. Institutional clients are offered: asset management, pension fund management, policy advice and management support. On June 30, 2015 PGGM had EUR 186.6 billion in assets under management. The PGGM cooperative has approximately 700,000 members and is helping them to realize a valuable future. Either alone or together with strategic partners, PGGM develops innovative future solutions by linking together pension, care, housing and work.
USS was established in 1975 as the principal pension scheme for universities and other higher education institutions in the UK. It has over 330,000 scheme members across nearly 400 institutions and is one of the largest pension schemes in the UK, with total fund assets of approximately £48 billion.
The scheme’s trustee is USS Limited, a corporate trustee which provides scheme management and trusteeship from its offices based in Liverpool and London. The trustee company delegates implementation of its investment strategy to a wholly-owned investment management subsidiary company – USS Investment Management Limited – which provides in-house investment management and advisory services.
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