Canadian pension fund set to acquire 70% stake in NextGen Networks

21 Feb 2013

Following on from reports late last month that one of Canada’s largest pension funds, Ontario Teachers’ Pension Plan (OTPP), was among the parties interested in the acquisition of Leighton Holding’s telecoms infrastructure unit NextGen Networks, The Australian reports that the pair have now struck a deal. It is understood that Leighton Holdings and OTPP have reached an agreement under which the latter will acquire a 70% stake in NextGen Networks for AUD620 million (USD642 million), after the pension fund beat out eight other final bidders for the right to enter exclusive negotiations over the proposed sale; rival bidders were said to include TPG Telecom and Hong Kong-based PCCW. With Leighton Holdings having said that the mooted deal values NextGen’s telecoms assets at AUD885m, it has been confirmed that the sale remains ‘subject to final negotiations, definitive documentation and due diligence’.

Commenting on the development, Leighton Holding’s CEO Hamish Tyrwhitt noted: ‘We are very pleased to have reached an exclusive negotiating position with Teachers, which is well-known for its global direct investment program and is a significant owner of assets in a number of countries, including Australia.’

Australia, Nextgen Networks