Ontario Teachers' Pension Plan, Toronto, and AIG Global Investment Group's AIG Highstar Capital II fund struck a deal to purchase InterGen, Burlington, Mass., and 10 of its power plants from Shell Generating (Holding) BV, a unit of Royal Dutch/Shell Group, the Hague, and San Francisco-based Bechtel Group's Bechtel Enterprises Energy BV unit for about C$2.2 billion (US$1.77 billion), said Lee Fullerton, spokeswoman for the pension fund.
The parties expect the transaction to close midyear, subject to unspecified closing conditions and regulatory approvals. The C$85 million teachers' pension fund and the AIG companies are equal partners in the joint venture, a news release said.
"This is an excellent opportunity to build on our existing portfolio of power generation assets that we currently own in partnership with AIG," Jim Leech, senior vice president of Ontario Teachers' Pension Plan, said in a statement. "InterGen has a well-diversified international portfolio of new and efficient power assets."
AIG spokesman Joe Norton confirmed details provided by Ms. Fullerton. Royal Dutch/Shell Group and Bechtel posted news releases on their websites confirming the deal.