February 20, 2013, 4:57 PM Ontario Teachers’ Pension Plan Strikes Again Down Under Article Comments Deal Journal Australia HOME PAGE »
By Gillian Tan Canadian pension funds just can’t get enough of Australia.
Reuters A Canadian flag is seen painted on a scull oar during the women’s lightweight double sculls heat at Eton Dorney during the London 2012 Olympic Games Just days after Ontario Municipal Employees Retirement System, or Omers, visited Sydney and announced it was on the hunt for assets, Macquarie Capital-advised Leighton Holdings Ltd. announced it is in exclusive talks to sell Ontario Teachers’ Pension Plan a 70% stake in its telecommunications assets.
The stake in Leighton’s Nextgen Networks, Metronode and Infoplex units is worth A$619.5 million (US$641.2 million), and is OTPP’s second deal in eight months following the A$2.3 billion privatization of the Sydney desalination plant last May which was a co-investment with Hastings Funds Management.
The Wall Street Journal also reported in December that a consortium including OTPP, is shortlisted in the privatization of two Australian ports in a deal that could raise $3 billion.
Moelis & Co. analyst Simon Fitzgerald who covers Leighton said the deal value was positive. “Perhaps holding on to 30% isn’t a bad thing as it leaves them with a seat at the table for construction opportunities going forward,” he told Deal Journal Australia.
Australia’s TPG Telecom Ltd. TPM.AU -9.39%, which was viewed as a logical trade buyer, sank 9.4% in response to Leighton’s announcement.
Head of Perennial Value Small Companies Grant Oshry, a shareholder of TPG Telecom said the company’s management had exercised discipline on price. “At least it didn’t get into the hands of a competitor,” he said by phone
