Freshfields Dubai advises CPP Investment Board on $7.32bn acquisition of Macquarie Communications Infrastructure Group

Under the terms of the deal, CPP has offered to purchase all of MCG's stapled securities for $2.50 per stapled security, reflecting an equity value for MCG of $1.37bn.

If the offer is accepted, CPP will acquire MCG's manager, Macquarie Communications Infrastructure Management Limited (MCIML) by way of a separate inter-conditional offer, together with MCIML's entire holding of 18.3% of MCG stapled securities.

In total, the offer and the related transaction represent a total equity investment by the CPP Investment Board of $2.03bn, including an amount for the redemption of MCG's corporate indebtedness and its outstanding exchangeable bonds, and imply a total enterprise value for MCG (including proportionately consolidated debt) of $7.32bn.

The offer, which will be implemented by way of court approved schemes of arrangement, has been unanimously recommended by the independent directors of MCG and is now subject to the approval of MCG's stapled security holders.

Commenting on the transaction, David Higgins, Head of Freshfields' corporate practice in the Middle East and North Africa said, "We are delighted to have another opportunity to work with the CPP Investment Board. This complex cross-border transaction supports the Board's strategic decision to acquire a diversified portfolio of high quality infrastructure assets."

Freshfields' team in Dubai, which advised on all aspects of the deal, was led by partner David Higgins with assistance from corporate senior associate Zoe Blakemore and associate James Kachel as well as finance associates Louise Allworthy and Clare O'Hare.