CPP Investments agrees to sell 33.3% indirect stake in Skyway Concession Company
Type: Sale · Technology: Transport · Country: United States · Announced: 2023-05-26
The PHP 26 billion sale saw CPP Investments divest its 33.3% indirect stake in Skyway Concession Company, operator of the 18-kilometer Skyway Stage 3.
Analysis
CPP Investments has agreed to divest a 33.3% indirect stake in Skyway Concession Company for PHP 26 billion. This transaction, announced on May 26, 2023, involves an interest in the operator of the 7.8-mile Chicago Skyway toll road in Illinois, USA. The sale of a significant minority position in a mature US transport asset, operating under a 99-year concession agreement, suggests a strategic portfolio rebalancing by CPP Investments. Divesting this indirect stake allows the Canada Pension Plan's investment manager to potentially reallocate capital. The deal structure, focusing on an indirect stake, provides flexibility for both the seller and the acquiring entity. CPP Investments, a global investment management organization, consistently optimizes its diverse infrastructure holdings across various geographies. This divestment from the US transport sector aligns with its mandate to manage assets for the Canada Pension Plan. Skyway Concession Company, already the operator of the 7.8-mile Chicago Skyway toll road in Illinois, USA, is consolidating ownership of its core asset. This move by Skyway Concession Company indicates a desire for increased control over the long-term 99-year concession. The transaction represents a consolidation within the US toll road sector, with an existing operator deepening its interest.
Key points
- CPP Investments sold a 33.3% indirect stake.
- The transaction value reached PHP 26 billion.
- The asset is the 7.8-mile Chicago Skyway toll road in Illinois, USA.
- Skyway Concession Company operates under a 99-year concession agreement.
- The deal was announced on May 26, 2023.
Counterparties
- Skyway Concession Company (Buyer)
- CPP Investments (Seller)