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Canadian pension funds said to eye $6 billion sale of renewables group Cubico

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Aug 10, 2023

A Canadian wind farm. (Photo By Raymond Boyd/Getty Images)

Two pension fund giants in Canada have hung a "for sale" sign on Cubico Sustainable Investments, a sustainable investment group they own, Reuters reports.

Why it matters: The sale could generate around $6 billion (including debt) for the two pension funds, the report says, a 10X valuation on the group's EBITDA that it's targeting.

Details: Montreal-based Public Sector Pension (PSP) Investment Board and the Ontario Teachers' Pension Plan (OTPP) are planning to appoint a banker in the coming weeks to advise on the sale.

Of note: Per Reuters:

  • "In 2015 the two funds partnered with Banco Santander SA to launch Cubico, and became equal owners after buying out the Spanish bank's stake the following year.
  • Cubico operates wind and solar farms in 12 countries in Europe and America, as well as concentrated solar power and transmission line technology operations with a capacity of 2.8 GW."
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