Hermes Infrastructure, parter of Hermes Investment Management, and the Canada Pension Plan Investment Board have signed an agreement to take a 30% stake in Associated British Ports – the owner of key UK ports – for an estimated £1.6bn.
The share will be purchased from GS Infrastructure Partners and Infracapital. This leaves Borealis Infrastructure and the Government of Singapore Investment Corporation as other key ABP shareholders. Subject to regulatory approval the deal should be finalised by the summer this year.
ABP owns some 21 ports in England, Scotland and Wales, which Hermes Infrastructure head Peter Hofbauer said provide long term predictable inflation linked cashflows.
The Canadian Pension Plan Investment Board has already invested some £7.6bn (€10.4bn) in UK infrastructure, property, public equity, real estate investment funds and direct investments.