Edmonton Journal

CPP triples stake in Peru natural gas firm

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TORONTO — The Canada Pension Plan Investment Board has more than tripled its stake in the largest natural gas transporte­r in Peru.

The pension fund says it paid $607 million US to buy an additional 23.6-per-cent equity stake in Transporta­dora de Gas del Peru SA.

The agreement will help increase its holdings to 36.8 per cent, when factoring in two other transactio­ns it has negotiated for smaller stakes of TGP, it said. The CPPIB bought an initial 10.4 per cent stake in January.

The CPPIB, one of Canada’s biggest pension funds, made the latest acquisitio­n from Tecpetrol Internatio­nal SA, Tecpetrol Internacio­nal SLU and Tecpetrol SA.

CPPIB also said it expects to buy an added 2.4-per-cent stake in TGP from Enagas Internacio­nal SL and a 0.4per cent interest from Corporacio­n Financiera de Inversione­s. Both transactio­ns are pending certain approvals.

The transactio­n Monday also included the purchase of Compania Operadora de Gas del Amazonas, which operates the natural gas company.

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