Ontario Teachers' Pension Plan and Morgan Stanley Infrastructure complete acquisition of SAESA Group



    TORONTO/NEW YORK, July 24 /CNW/ - The Ontario Teachers' Pension Plan
(Teachers') and Morgan Stanley Infrastructure (MSI) have completed the
transaction to jointly acquire SAESA Group (SAESA), a Chilean electricity
distribution, transmission and generation company, from Public Service
Enterprise Group (PSEG) for a purchase price of US$887 million. Under the
agreement announced with PSEG on June 17, Teachers' and MSI each own 50% of
the company and have assumed approximately US$400 million in existing company
debt. The enterprise value of the company is US$1.3 billion.
    "As an international infrastructure investor, we are very pleased to be a
new, long-term shareholder of SAESA's diversified electricity assets," said
Stephen Dowd, Teachers' Senior Vice-President, Infrastructure. "We invest in
companies with stable cash flows linked to inflation to help pay
inflation-indexed pensions. SAESA is an excellent fit for our portfolio and we
look forward to supporting Francisco Mualim and his management team both
strategically and financially to foster the company's future growth and
success."
    "We are pleased to have SAESA as part of our portfolio of infrastructure
investments," said Ron Lepin, Chief Operating Officer of MSI. "SAESA operates
in a high-growth market within a favorable regulatory environment, which
allows for long-term predictable cash flows that fit our investment
objectives. We look forward to working closely with SAESA's experienced
management team to extend the company's strong track record and sector
performance."
    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 135MWs of wind, hydro, and thermal power
generation capacity, and through its transmission company, owns and operates
950 km of transmission lines. Francisco Mualim, Chief Executive Officer, and
his management team will continue to operate SAESA's electricity assets from
the company's head office in Osorno, Chile.

    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 indexed pensions. More information
is available at www.otpp.com.

    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 US$605 billion in assets under management as
of May 31, 2008. For further information about Morgan Stanley Infrastructure,
please visit www.morganstanley.com/infrastructure.





For further information:

For further information: Carol Dunsmore, Ontario Teachers' Pension Plan,
(416) 730-5302, carol_dunsmore@otpp.com, www.otpp.com; Marie Ali, Vice
President, Corporate Communications, Morgan Stanley Infrastructure, (212)
762-6884, Marie.Ali@morganstanley.com, www.morganstanley.com/infrastructure


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