Ontario Teachers' Pension Plan completes purchase of interests in Chilean water utilities

    TORONTO, Aug. 27 /CNW/ - The Ontario Teachers' Pension Plan (Teachers')
has completed its purchase of interests in Empresa de Servicios Sanitarios del
Bio-Bio S.A. (ESSBIO) and Aguas Nuevo Sur Maule, S.A. (ANSM), two water
utilities representing 20 per cent of regulated water and wastewater services
in Chile.
    Teachers' has acquired 50.8 per cent of ESSBIO, which continues as a
publicly traded company, for C$356.5 million (US$340 million). It has also
acquired 100 per cent of Aguas Nuevo Sur Maule, S.A. (ANSM), a privately held
company, for an undisclosed amount. Stakes in both companies were purchased
from Southern Cross and other minor shareholders.
    In May, Teachers' agreed to purchase ANSM and a 50.01% interest in
ESSBIO. Subsequently, an offer was tendered for ESSBIO's remaining shares as
required of controlling shareholders under Chilean securities regulations. In
August, Teachers' signed a separate agreement to purchase up to 100 per cent
of Esval S.A., Chile's third largest water and wastewater company. That
transaction is expected to close by the end of November.
    "We're delighted that CORFO, a Chilean government agency, will continue
as a major shareholder and look forward to a long relationship with the
high-quality companies and the solid management teams that will continue to
operate the businesses," said Jim Leech, Senior Vice-President, Ontario
Teachers' Pension Plan. "We're a long-term investor and are committed to
supporting the development plans of these companies," he added.
    "Chile is an excellent country for us to invest in because of its growing
economy, openness to foreign investment, and mature regulatory environment for
the water sector," said Mr. Leech. Infrastructure investments generate
reliable, long-term returns that are correlated to inflation, making them a
good match for paying inflation-indexed pensions to the plan's members.

    ESSBIO is the second largest water and wastewater services company in
Chile, delivering water and sanitation services to more than 610,000
customers. ANSM provides water and wastewater services to more than 195,000
customers. Together the companies represent approximately 20 per cent of the
regulated water and wastewater market in Chile. The companies serve an area in
central Chile between Santiago and Concepcisn. As an owner and investor,
Teachers' will continue to rely on local management to operate these services.

    The Ontario Teachers' Pension Plan is the largest single-profession
pension plan in Canada, with C$106 billion (US$101 billion) in net assets. An
independent corporation, it invests the pension fund's assets and administers
the pensions of Ontario's 167,000 elementary and secondary school teachers and
104,000 retired teachers. Its Infrastructure Group focuses on the acquisition
and long-term retention of low-risk assets that generate stable returns linked
to inflation. The combined value of the fund's investments in infrastructure
and timber, and private equity is approximately $16 billion (US$15.2 billion).
    For more information, please visit www.otpp.com.

For further information:

For further information: Deborah Allan, Ontario Teachers' Pension Plan,
(416) 730-5351, deborah_allan@otpp.com

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