Morgan Stanley Infrastructure and Ontario Teachers' Pension Plan Announce Agreement to Acquire PSEG's Chilean Electricity Assets



    NEW YORK and TORONTO, June 17 /CNW/ - Morgan Stanley Infrastructure
("MSI") and The Ontario Teachers' Pension Plan ("Teachers'") today announced
that they have entered into a definitive agreement to acquire jointly SAESA
Group ("SAESA"), a Chilean electric distribution, transmission and generation
subsidiary of Public Service Enterprise Group Incorporated ("PSEG"), a
US-based integrated power company headquartered in New Jersey. The purchase
price is approximately US$870 million, and MSI and Teachers' will also assume
more than $400 million in existing company debt. There will be a price
adjustment based on timing of the closing, which is expected to occur in the
third quarter of 2008. Ownership of the US$1.3 billion enterprise will be
shared equally between MSI and Teachers'.
    SAESA is the second largest electricity distributor in Chile in terms of
geographical coverage, and is the main provider of electricity in the rapidly
growing southern regions of the country. The company serves 16% of Chile's
population, providing electric service to approximately 2.6 million people. In
addition, SAESA owns and operates in excess of 135 mega watts of wind, hydro,
diesel, and gas electric generating capacity, and through its transmission
company, owns and operates 949 km of secondary transmission lines.
    "As the first Latin American country to privatize and restructure its
electricity industry over twenty years ago, Chile has established a
sophisticated and stable regulatory framework that we find attractive," said
Ron Lepin, Chief Operating Officer of MSI. "SAESA is a 90%-regulated business
that generates predictable cash flows and steady returns over the long term,
which is well suited to our investment objectives. We look forward to
supporting the company's platform and growth prospects in a country that has
been Latin America's fastest-growing economy over the last 15 years."
    Stephen Dowd, Teachers' Vice-President, Infrastructure, said Teachers'
invests globally in regulated industries that will provide stable,
inflation-adjusted returns over the long term. "SAESA Group is a well-run
company with diversified electricity assets and a strong market position in
Chile's regulated energy sector, making this an excellent investment for our
portfolio," said Mr. Dowd. "As an active owner, we are committed to working in
a strategic capacity with management and our partner to support the long-term
growth of the company."

    About Morgan Stanley Infrastructure

    Morgan Stanley Infrastructure is a global investment platform that
focuses on long-term investments associated with providing essential public
goods and services to societies across the globe. With offices in North
America, Europe and Asia, Morgan Stanley Infrastructure is part of the
Merchant Banking Division within Morgan Stanley Investment Management. Morgan
Stanley Investment Management has $577 billion in assets under management as
of February 29, 2008. For further information about Morgan Stanley
Infrastructure, please visit www.morganstanley.com/infrastructure.

    About The Ontario Teachers' Pension Plan

    The Ontario Teachers' Pension Plan is the largest single-profession
pension plan in Canada, with C$108.5 billion (US$107.1 billion) in net assets
as of December 31, 2007. An independent corporation, it is responsible for
investing the pension fund's assets and administering the pensions of
Ontario's 278,000 active and retired teachers. Teachers' Infrastructure
portfolio was initiated in 2001 and focuses on the acquisition and long-term
retention of assets that have a long economic life and offer low-risk,
reliable returns linked to inflation to pay inflation-indexed pensions. For
more information, visit www.otpp.com.





For further information:

For further information: Morgan Stanley Infrastructure, Marie Ali, (212)
762-6884; Ontario Teachers' Pension Plan, Deborah Allan, (416) 730-5347


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