Ontario Teachers Pension Plan will acquire up to 100% of Esval SA, a public water and wastewater company in Chile, confirmed Debra Hanna, spokeswoman for the C$106 billion ($101 billion) fund. It will pay C$384 million to acquire the roughly 49% of the company held by bank and insurer Consorcio Financiero and other shareholders. The fund will also launch a public tender, required under Chilean securities law, for all the remaining shares. About 29% of these shares are owned by CORFO, a government agency.
We like these companies for a number of reasons, said Jim Leech, senior vice president of Teachers Private Capital, the pension plans private investment arm, in a news release. They are regional monopolies with exclusive rights to operate in their geographic area; they provide stable, low-risk returns; and they have a very long economic shelf life consistent with our long-term investment goals.
The combined value of the funds investments in infrastructure, timber and private equity is approximately $16 billion.