TORONTO - The Ontario Teachers' Pension Plan said Wednesday it plans on acquiring a 70 per cent stake in three Australian telecommunications companies.
The agreement between the pension plan and Sydney-based Leighton Holdings Ltd. involves the acquisition of Nextgen Networks, Metronode and Infoplex.
The pension plan says the companies are valued at about C$907 million.
The deal, which is subject to regulatory approval, is expected to close later this year and will see Leighton retain its remaining 30 per cent interest in the companies.
Nextgen is a manager of high-speed fibre network services, Metronode is a data centre specialist and Infoplex provides cloud and information and communications technology services.
The three companies will remain headquartered in Australia.
"We are excited about moving ahead with Leighton. The businesses are a good fit with our portfolio and investment mandate," said Lee Sienna, vice-president of long-term equities at the pension plan.
"Together they provide solid revenue streams and growth upside. We look forward to working with the existing management team to build on its strong track record."
In January, the pension plan announced it wanted to acquire SeaCube Container Leasing Ltd., one of the world's largest container leasing companies.
With $117.1 billion in assets as of Dec. 31, 2011, the Ontario Teachers' Pension Plan is the largest single-profession pension plan in Canada. It invests the pension fund's assets and administers the pensions of 300,000 active and retired teachers in Ontario.