Separately, Ontario Teachers’ and KKR have signed binding documentation to acquire a further 40% holding in Caruna from OMERS, which will increase their ownership to 40% each. This later transaction is expected to close during the second quarter of 2021, pending regulatory approvals.
No further details around these transactions were disclosed.
KKR is making the investment through its core infrastructure strategy which focuses on investing in high quality regulated assets in developed OECD markets. Since 2008 across its global infrastructure business, KKR has deployed more than $24 billion in more than 40 infrastructure investments. Ontario Teachers' is Canada's largest single-profession pension plan. It has extensive experience in investing in regulated electricity transmission and distribution businesses, as well as the broader energy sector. AMF manages collectively agreed occupational pensions for approximately 4 million customers and is owned equally by the Swedish Trade Union Confederation (LO) and the Confederation of Swedish Enterprises (Svenskt Näringsliv).
"The electrification of society and the increase of renewable energy production – key elements of Finland’s decarbonization plans – require a strong and smart electricity network. We are convinced that Caruna is well-placed to build a smart and weatherproof electricity network for its customers that will meet growing consumption needs while helping transition to a low-carbon economy. We are committed to investing in Caruna to achieve these goals," says Dale Burgess, Senior Managing Director, Infrastructure & Natural Resources at Ontario Teachers’.
"All Caruna’s owners are large and well-established infrastructure investors with significant experience and resources to support and develop the company over the long term. We are also pleased to maintain Elo as a longstanding domestic investor. The company and its personnel will continue to operate in accordance with its existing strategy and business plan," says Matti Ruotsala, Chairman of the Board of Caruna.
Upon the closing of all three transactions, the ownership of Caruna will be as follows:
Ontario Teachers' 40%
AMF Pension 12.5 %
Elo Mutual Pension Insurance Company 7.5 %