meg in the news Globe says pension funds could be eyeing MEG's Access
2016-01-28 08:43 ET - In the News
The Globe and Mail reports in its Thursday, Jan. 28, edition that the largest Canadian pension funds have become major infrastructure investors and several of them rank among the top global players in the asset class. The Globe's Jacqueline Nelson writes that the 10 biggest Canadian pension funds have snapped up airports, toll roads and shipping ports around the world, drawn by the steady cash flows these assets can provide. These funds also have about $149-billion invested in real estate, infrastructure and private equity at home, too, according to research from Boston Consulting Group. More energy infrastructure deals could lie ahead -- particularly in Canada -- as producers seek to ease financial burdens caused by low commodity prices by selling some assets. AltaCorp Capital analyst Dirk Lever says, "We believe Canadian pension funds ... can have a unique cost of capital advantage over other buyers where income tax considerations of the seller are important." Mr. Lever points out that there are currently some large assets on the table such as the Access pipeline, owned in part by oil sands producer MEG Energy. The company has been shopping its 50-per-cent interest in the pipeline with no results yet.
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