IMCO sells stake in Spanish electricity provider

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Lightning inside a glass bulb © Tom? Flori?n  /123RF Stock PhotosThe Investment Management Corp. of Ontario has sold its interest in Spanish electricity provider, Viesgo, to funds managed by Macquarie Infrastructure and Real Assets.

Before the sale, the IMCO and MIRA collectively owned 60 per cent of Viesgo, while Wren House Infrastructure owned the remaining 40 per cent. The initial investment in Viesgo was part of legacy client strategies before the IMCO’s inception and was made in tandem with MIRA through one of its investment vehicles. As part of the new deal, MIRA-managed funds are acquiring the IMCO’s portion of the shared stake and Wren House’s total stake, as well.

“The investment made in 2015 alongside MIRA has generated a strong return due to the successful implementation of a number of strategic initiatives,” said Tim Formuziewich, managing director and global head of infrastructure, at the IMCO, in a press release. “We would like to thank Viesgo’s management team and MIRA, who have done a tremendous job at driving value in this investment.”

IMCO Infrastructure has been shedding certain energy and utility holdings over the past few months, the release noted. “The infrastructure team is building an investment portfolio that is appropriate for a multi-client environment versus individual clients,” said Formuziewich, in an email to the Canadian Investment Review. 

Sector-specific considerations weren’t material factors in these latest divestiture decisions, he added. “Renewables, power and utilities are key components of IMCO’s infrastructure strategy going forward.”

And at the end of 2019, the IMCO held $5.7 billion in infrastructure assets. The organization plans to grow its overall infrastructure program to $10 billion by 2024.

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