The Public Sector Pension Investment Board (PSP) has acquired the shares it did not already owned in Isolux Infrastructure, allowing the concessions business to spin off from Spain’s Grupo Isolux Corsán.
Following the transaction, which was announced late last year and was pending regulatory approval, PSP has decided to rebrand the unit as ROADIS and make it its new roads investment platform.
The Montreal-based pension so far owned 19.23 percent of Isolux Infrastructure, the remainder belonging to Grupo Isolux. PSP initially invested €500 million in the business in 2012, as part of a capital raise that also saw it receive a €100 million equity injection from its developer parent.
Its new platform will now manage a portfolio of 1,644km of roads across nine concessions spanning Brazil, India, Mexico, Spain and the US.
“Building partnerships with strong operators and leveraging industry-specialised platforms is one of PSP Investments’ strategies to capture value and generate attractive returns,” said Guthrie Stewart, PSP’s global head of private investments, in a statement. “The ROADIS management team has proven capabilities to source and successfully execute new acquisitions in the road sector.”
As part of the transaction, PSP also bought Grupo Isolux’s indirect stake in the Wind Energy Transmission Texas joint venture (WETT). The pension now owns 50 percent of the asset, the other half belonging to Brookfield Asset Management.
Isolux secured $645 million for the refinancing of WETT, which consists of 604km of 345kV transmission lines and six switching stations, through the issuance of 20-year US bonds last January.