Canadian pension funds to own 53% of Inmarsat

The Canadian Press

TORONTO — Two of Canada’s largest pension funds have committed more than half of the US$3.08 billion that the Triton consortium has agreed to pay for Inmarsat PLC, a U.K.-based provider of satellite services for data and voice communications.
Canada Pension Plan Investment Board said Monday its financial commitment will be approximately US$900 million, or about 29.27 per cent of the total amount, assuming the deal receives all approvals.
Ontario Teachers’ Pension Plan didn’t announce the value of its commitment but pointed to regulatory documents that say it has agreed to provide 24.39 per cent of the consortium’s investment, which would be about US$750 million.
Funds managed by Apax Partners and Warburg Pincus will have 24.39 and 21.95 per cent stakes respectively.
The Toronto-based pension managers ‚Äî two of Canada’s biggest institutional investors ‚Äî said they believe the satellite sector has attractive investment potential, given the long lead times and technical expertise required.
They said Triton Bidco believes that integrated satellite operators with scale like Inmarsat are well positioned as network provision becomes more complex.
Documents filed with U.K. regulators on Friday valued the offer at US$7.21 per Inmarsat share, including $7.09 to purchase each share and 12 cents per share from a previously announced dividend to shareholders.