CPP and Ontario Teachers’ Pension Plan Board’s $2.079 Billion Tender Offer to purchase 40% of Impulsora del Desarrollo y el Empleo en América Latina (Ideal)


Torys, Creel, García-Cuéllar, Aiza y Enríquez, PBP Abogados and Galicia Abogados advised on the transaction

Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board completed of the tender offer period to purchase 40% of the shares of Impulsora del Desarrollo y el Empleo en América Latina, S.A.B. de C.V.. This step concludes the shareholders’ acceptance of the offer of affiliates of Ontario Teachers’ and CPP Investments to purchase the shares of IDEAL.

In accordance with Mexican law, the acquired shares will be transferred to CPP Investments and Ontario Teachers’ on April 17 and the tender offer will formally settle on April 23.

The acquisition, which was first announced in November 2019, follows a tender offer in the Mexican stock exchange on March 18 for shares in IDEAL at MXN$43.96 per share. CPP Investments will own a 23.7% interest in IDEAL alongside a 16.3% stake owned by Ontario Teachers’. The current majority owners of IDEAL’s outstanding shares will continue to hold a majority shareholding in the company.

IDEAL is a sizable and important investment that provides exposure to existing and future infrastructure projects throughout Mexico. IDEAL’s portfolio includes 18 infrastructure concessions in Mexico (13 toll roads, three logistics terminals and two wastewater treatment plants), as well as an electronic toll collection service business and an operations business. IDEAL, Ontario Teachers’ and CPP Investments are already partners in the Arco Norte and Pacifico Sur toll roads.

As part of the arrangement, a subsidiary of IDEAL will form an infrastructure investment trust known locally in Mexico as a FIBRA-E (Fideicomiso de Inversión en Energía e Infraestructura). This FIBRA-E is subject to certain transaction steps and filings that are yet to be finalized. The FIBRA-E will subsequently be funded by IDEAL, CPP Investments and Ontario Teachers’, through certain affiliates. This is expected to occur before the end of April. The FIBRA-E structure was introduced in Mexico in 2015 to encourage private-sector investment in infrastructure projects.

As previously announced, the FIBRA-E will be managed by a subsidiary of IDEAL and purchase partial stakes in four of IDEAL’s toll roads: Arco Norte, Chamapa – La Venta, Toluca Bypass and Tijuana – Tecate. Following the completion of this funding, a secondary offering led by CPP Investments and Ontario Teachers’, through certain affiliates, will reduce their ownership to minority positions, while also introducing other investors.

Torys advised Canada Pension Plan Investment Board (Cppib) and Ontario Teachers’ Pension Plan (Otpp) with Jared Fontaine (Picture), Michael Horwitz, Michael Portner Gartke, Kevin Chan and Shane Thomas.

In Mexico, Creel, García-Cuéllar, Aiza y Enríquez advised Canada Pension Plan Investment Board (Cppib) and Ontario Teachers’ Pension Plan (Otpp) with Jorge Montaño Valdés, Jean Michel Enríquez D., Omar Zúñiga Arroyo, Santiago Sepúlveda, Luis Gerardo García Santos Coy, Vanessa Giménez, Diego Barrera, Javier Gómez Morín, Eduardo Brandt López, Martha Torres, Ana Amado, Rodrigo Macías Peña Medrano and Susana Ávalos.

PBP Abogados advised Impulsora del Desarrollo y el Empleo en América Latina (Ideal) with Francisco Pérez Ortega and Daniel Silva D.

Creel, García–Cuéllar, Aiza y Enríquez advised Impulsora del Desarrollo y el Empleo en América Latina, S.A.B. de C.V. (Ideal), and Promotora del Desarrollo de América Latina, S.A. de C.V (Pdal). on the formation of FIBRA-E (Fideicomiso de Inversión en Energía e Infraestructura) and on the secondary offering with Carlos Zamarrón, Emilio Aarún Cordero, Mercedes Haddad, Jorge Correa Cervera, Luis Gerardo García Santos Coy, Jorge Montaño Valdés, Omar Zúñiga Arroyo, Luis Michel Sánchez O´Sullivan, Norma Chayo Dichi, Gerardo A. Farías López, Aleine S. Obregón Natera, Juan Pablo Sandoval, Luis Ernesto Salomón Llinás, Adriana Colliers Fuertes, Santiago Reyes Abogado, Juan Pablo Sánchez Cobo, José Pablo Buenfil Reyes, Diego Barrera, Javier Gómez Morín, Rodrigo Macías Peña Medrano, Eduardo Brandt López and Susana Ávalos.

Creel, García–Cuéllar, Aiza y Enríquez advised also Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers’ Pension Plan (OTPP) with Jorge Montaño, Omar Zúñiga Arroyo, Diego Barrera, Javier Gómez Morín, Rodrigo Macías Peña Medrano, Eduardo Brandt López and Susana Ávalos.

Galicia Abogados advised Casa de Bolsa Credit Suisse (México), S.A. de C.V., Inversora Bursátil, S.A. de C.V., Casa de Bolsa, Casa de Bolsa Santander, S.A. de C.V., Casa de Bolsa BBVA Bancomer, S.A. de C.V., HSBC Casa de Bolsa, S.A. de C.V., and Merrill Lynch México, S.A. de C.V. with Guillermo Pérez Santiago, Maurice Berkman and María de los Ángeles Padilla Zubiría.

Involved fees earner: Ana Amado Córdova – Creel Abogados; Emilio Aarún Cordero – Creel, García-Cuéllar, Aiza y Enriquez SC; Susana Avalos Trujillo – Creel, García-Cuéllar, Aiza y Enriquez SC; Diego Barrera Pieck – Creel, García-Cuéllar, Aiza y Enriquez SC; Eduardo Brandt – Creel, García-Cuéllar, Aiza y Enriquez SC; José Pablo Buenfil – Creel, García-Cuéllar, Aiza y Enriquez SC; Norma Chayo Dichi – Creel, García-Cuéllar, Aiza y Enriquez SC; Adriana Colliers – Creel, García-Cuéllar, Aiza y Enriquez SC; Jorge Correa Cervera – Creel, García-Cuéllar, Aiza y Enriquez SC; Jean Michel Enriquez – Creel, García-Cuéllar, Aiza y Enriquez SC; Gerardo Farías Lopez – Creel, García-Cuéllar, Aiza y Enriquez SC; Luis Gerardo García Santos Coy – Creel, García-Cuéllar, Aiza y Enriquez SC; Vanessa Giménez – Creel, García-Cuéllar, Aiza y Enriquez SC; Mercedes Haddad – Creel, García-Cuéllar, Aiza y Enriquez SC; Jorge Montaño Valdés – Creel, García-Cuéllar, Aiza y Enriquez SC; Javier Gómez Morin Cuevas – Creel, García-Cuéllar, Aiza y Enriquez SC; Aleine Obregón Natera – Creel, García-Cuéllar, Aiza y Enriquez SC; Santiago Reyes – Creel, García-Cuéllar, Aiza y Enriquez SC; Rodrigo Macías Peña Medrano – Creel, García-Cuéllar, Aiza y Enriquez SC; Luis Salomón Llinás – Creel, García-Cuéllar, Aiza y Enriquez SC; Juan Pabló Sánchez Cobo – Creel, García-Cuéllar, Aiza y Enriquez SC; L. Michel Sánchez O’Sullivan – Creel, García-Cuéllar, Aiza y Enriquez SC; Santiago Sepúlveda – Creel, García-Cuéllar, Aiza y Enriquez SC; Martha Torres – Creel, García-Cuéllar, Aiza y Enriquez SC; Carlos Zamarrón – Creel, García-Cuéllar, Aiza y Enriquez SC; Omar Zúñiga Arroyo – Creel, García-Cuéllar, Aiza y Enriquez SC; Maurice Berkman – Galicia Abogados, S.C; María de los Ángeles Padilla Zubiría – Galicia Abogados, S.C; Guillermo Pérez Santiago – Galicia Abogados, S.C; Francisco Pérez Ortega – PBP Abogados; Daniel Silva Dominguez – PBP Abogados; Kevin Chan – Torys LLP; Jared Fontaine – Torys LLP; Michael Horwitz – Torys LLP; Michael Portner Gartke – Torys LLP; Shane Thomas – Torys LLP;

Law Firms: Creel Abogados; Creel, García-Cuéllar, Aiza y Enriquez SC; Galicia Abogados, S.C; PBP Abogados; Torys LLP;

Clients: Banco Santander Mexico SA; Canada Pension Plan Investment Board; Casa de Bolsa BBVA Bancomer; Credit Suisse Mexico SA; HSBC Mexico SA; Impulsora del Desarrollo y el Empleo en América Latina; Inversora Bursátil, S.A. de C.V.; Merrill Lynch, Pierce, Fenner & Smith Incorporated; Ontario Teachers’ Pension Plan; Ontario Teachers’ Pension Plan Board; Promotora del Desarrollo de América Latina, S. A. de C.V. ;

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Author: Ambrogio Visconti