OMERS to acquire 23.9% stake in Canadian pension funds controlled Puget Sound Energy

OMERS Infrastructure has entered into a definitive agreement to purchase 23.9% stake in Puget Holdings LLC (Puget).

OMERS Infrastructure and Dutch pension fund manager PGGM, who is acquiring a 10% stake, are buying the stakes as part of divestitures of the non-controlling 44% interest in Puget by Macquarie Infrastructure Partners (MIP) funds.

The MIP funds, which include investments other than Puget Holdings, are nearing the end of their terms as was anticipated when the 2009 investment was made.

Alberta Investment Management Corporation (AIMCo) and British Columbia Investment Management Corporation (BCI) are increasing positions they’ve held since 2009 by 6% and 4% to 13.6% and 20.9%, respectively. Canada Pension Plan Investment Board (CPPIB), an investor since 2009, will continue to hold its 31.6% stake.

Upon closing of the transaction, Puget Holdings will be majority owned by four major Canadian pension funds.

Bellevue, Washington based Puget Holdings LLC, operating through Puget Sound Energy (PSE), is Washington state’s oldest local energy company, providing electric and natural gas service to homes and businesses primarily in the vibrant Puget Sound area.

PSE reported revenues of US $3.19 billion and assets of $10.8 billion. The company has approximately 2,700 employees.

photo credit: PSE

News Release

OMERS Infrastructure Announces Investment in Puget Sound Energy

(New York and Toronto, Aug 8, GlobeNewsWire) – OMERS Infrastructure announced today that it has entered into a definitive agreement to purchase an approximately 24 percent interest in Puget Holdings LLC (Puget). Puget’s core business is Puget Sound Energy (PSE), a regulated utility that is Washington state’s oldest local energy company, providing electric and natural gas service to homes and businesses primarily in the vibrant Puget Sound area. More than one million customers rely on PSE for electricity, while more than 800,000 count on PSE for natural gas.

OMERS Infrastructure is the infrastructure investment manager of OMERS, the defined benefit pension plan for municipal employees in the Province of Ontario, Canada.

“We are very pleased to announce our investment in Puget, which fits strongly with our strategy of acquiring assets aimed at generating steady, long-term cash flow to pay pensions to the OMERS members,” said Ralph Berg, OMERS Infrastructure’s Executive Vice President and Global Head. “The acquisition of Puget strengthens our presence in the US, including our investments in the Chicago Skyway toll road and Oncor Electric Delivery, the largest transmission and distribution company in Texas,” he added.

“We look forward to working with the management team at Puget to continue to efficiently invest for the community, promote the generation of reliable energy and provide high service standards to its customers,” said Michael Ryder, Senior Managing Director, Americas, for OMERS Infrastructure.

Further financial information is not being disclosed.

For Further Information:

Neil Hrab, OMERS Manager, External Communications and Media Relations

nhrab@omers.com

+1 416.369.2418

About OMERS and OMERS Infrastructure

OMERS Infrastructure invests globally in infrastructure assets on behalf of OMERS, the defined benefit pension plan for Ontario’s municipal employees. Investments are aimed at steady returns to help deliver strong and sustainable pensions to OMERS members. OMERS Infrastructure’s diversified portfolio of large-scale infrastructure assets exhibits stability and strong cash flows, in sectors including energy, transportation and government-regulated services.

OMERS has employees in Toronto and other major cities across North America, the U.K., Europe, Asia and Australia. OMERS is one of Canada’s largest defined benefit pension funds, with net assets of more than C$95 billion. Visit www.omersprivatemarkets.com for more information.

Ted Liu

Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal and CanadaMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted was the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, the most sophisticated and advanced all private capital and public market financing database.