Ontario Teachers' Pension Fund and private equity fund Unitas Capital have teamed up for a potential joint bid for Singapore-based industrial fastener maker Infastech in a deal worth over $750 million, said two sources with knowledge of the matter.
Teachers', which oversees about C$117.1 billion ($114.93 billion) in assets, is already an investor in Unitas' last Asia fund in 2008. The two firms worked together in 2007 for their NZ$2.2 billion ($1.76 billion) leveraged buyout for New Zealand's Yellow Pages Group.
Along with many Western pension plans, Teachers' is actively seeking opportunities for direct investments to increase its share of profits as they face the need to provide pensions for ageing populations.
CVC Capital Partners CVC.UL and Standard Chartered's (STAN.L) private equity arm have hired Bank of America (BAC.N) and Goldman Sachs (GS.N) to sell Infastech, after buying it for about $350 million to $400 million in 2010.
With second-round bids due next week, Unitas is teaming up with Teachers' as it faces a potential rival strategic bid from Stanley Black & Decker (SWK.N).
Unitas declined comment. Teachers' could not immediately be reached for comment. Sources were not authorized to speak to the media. ($1 = 1.0188 Canadian dollars) ($1 = 1.2527 New Zealand dollars)
This article is copyrighted by Reuters
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