CPE News (10/16/2020) – Canadian Pacific Railway Limited (TSX/NYSE: CP) has reached an agreement with OMERS Infrastructure pursuant to which CP will acquire full ownership of the Detroit River Rail Tunnel from OMERS. The purchase price for the transaction is approximately US $312 million subject to customary closing adjustments.
CP previously owned a 16.5% stake of the tunnel in partnership with OMERS.
The 2.6-kilometre tunnel linking Windsor and Detroit has been continuously operated by CP during the period of OMERS investment
The transaction remains subject to customary closing conditions, including receipt of regulatory approvals.
CP and OMERS Infrastructure, formerly Borealis Infrastructure Management, formed 50-50 Detroit River Tunnel Partnership in 2001. CP sold an additional 33.5% interest to OEMRS for CDN $110 million in March 2009.
photo credit: CP
News Release
OMERS Infrastructure Announces Sale of Interest in Detroit River Tunnel Partnership to Canadian Pacific
TORONTO, Oct. 16, 2020 (GLOBE NEWSWIRE) — OMERS Infrastructure today announced the signing of an agreement to sell its interest in the Detroit River Tunnel Partnership and related assets (“DRTP”) to Canadian Pacific and its affiliates (“CP”).
DRTP is the owner of the Detroit River Rail Tunnel, which passes under the Detroit River between Windsor, Ontario and Detroit, Michigan. An important infrastructure asset, and cross-border rail gateway, the tunnel has been continuously operated by CP during the period of OMERS investment.
“OMERS first invested in DRTP in 2001. We are very proud of the value we have created with this investment for OMERS members,” said Michael Ryder, Senior Managing Director and Head of Americas for OMERS Infrastructure. “Our work with CP represents a strong example of our global investment approach in action – collaborating with a trusted strategic partner as long-term owners and developers of a major international transportation link.”
“It has been a pleasure to work with the CP team to ensure safe, reliable operations of this important infrastructure asset for commercial users and regional stakeholders,” said Peter Gray, Director, OMERS Infrastructure. “We sincerely thank CP for its partnership, and we wish them continued success.”
The transaction remains subject to customary closing conditions, including receipt of regulatory approvals.
TD Securities Inc. acted as financial advisor to OMERS Infrastructure, and Torys LLP acted as legal advisor.
Contact
Neil Hrab
OMERS Manager, Media Relations
+14163692418
nhrab@omers.com
About OMERS and OMERS Infrastructure:
OMERS Infrastructure manages investments globally in infrastructure on behalf of OMERS, the defined benefit pension plan for municipal employees in the Province of Ontario, Canada. Investments are aimed at steady returns to help deliver sustainable, affordable and meaningful pensions to OMERS members.
OMERS 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., Continental Europe, Asia and Australia. OMERS is one of Canada’s largest defined benefit pension funds with net assets of C$109 billion.
More info: www.omersinfrastructure.com