The Canada Pension Plan Investment Board has purchased a 23.6% equity stake in Transportadora de Gas del Peru S.A. (TGP), a Peruvian pipeline company.
The transaction included the acquisition of 100% of Compania Operadora de Gas del Amazonas (COGA), the operator for the pipeline company. The total consideration paid by CPPIB for both positions was US$607 million.
Now, CPPIB expects to scoop up an additional 2.4% interest in TGP from Enagas Internacional, S.L., and an additional 0.4% interest in TGP from Corporacion Financiera de Inversiones S.A.A.
Then, CPPIB has agreed to sell a 51% interest in COGA to Grana y Montero, and 30% of COGA to Enagas. Following completion of those transactions, CPPIB will retain a 19% interest in COGA.
“TGP fits well with our infrastructure portfolio and is in line with our strategy to invest in key sectors in Latin America,” says Andre Bourbonnais, senior vice-president of private investments at CPPIB.
TGP is the largest transporter of natural gas and natural gas liquids in Peru. Its customers include large power generators, natural gas distributors and industrial companies in the region.