March 17, 2020 / 6:51 PM / 13 days ago

Mexico's Slim gets $2 billion offer for IDEAL stake from Canada funds

MEXICO CITY (Reuters) - Mexican infrastructure group IDEAL said on Tuesday the Canada Pension Plan Investment Board and an affiliate of Ontario Teachers’ Pension Plan have offered to acquire 40% of the company’s shares for $50.4 billion pesos ($2.19 billion).

IDEAL said in a statement that the Canadian funds had made an offer for up to 100% of the company’s shares.

Nevertheless, on a conference call with reporters, IDEAL Chief Executive Alejandro Aboumrad explained that under Mexican law, bids for more than 30% of a firm require the bidder to make an offer for up to 100% of the company.

The agreement between the firms was only for the Canadian pension funds to acquire 40% of IDEAL, he said.

The family of Mexican billionaire Carlos Slim will retain control of the company, Aboumrad added.

The deal was signed in November, and the pension funds officially made the offer on Tuesday, IDEAL said.

IDEAL said the transaction would give the company greater access to capital to invest in Mexican infrastructure.

“This transaction will allow IDEAL to have a solid capital and shareholder structure,” the company said in a statement to Mexico’s stock exchange.

IDEAL manages highway, water treatment, electric energy generation and social infrastructure projects across Mexico.

Reporting by Anthony Esposito and Julia Love; Editing by Richard Chang

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