Intoll Settles with OTPP
The largest professional pension plan in Canada has come to an AUD$20 million settlement agreement with Australian-based Intoll Group.
According to an announcement today, the Ontario Teachers’ Pension Plan (OTTP) confirmed on its Web site that Intoll, which is formerly known as Macquarie Infrastructure Group (MIG), has agreed to the resolution.
The 284,000-member retirement plan filed legal action against MIG in 2006 for allegedly breaching its contractual duties, the March 9 release said.
“We are pleased that Intoll has agreed to settle this matter,” Stephen Dowd, OTTP senior VP of infrastructure, said in the statement.
In January, Macquarie announced that MIG portfolio would be reorganized into Intoll and Macquarie Atlas Roads “on the basis of risk profile and management requirements,” this according to a proposal from its MIG 2010 Extraordinary General Meeting (EGM). As a result of the shareholder vote, both entities now trade separately on the Australian Securities Exchange (ASX).
Additionally, Intoll, which currently owns and manages interests in highways 407 ETR in Toronto, and the Westlink M7 in Sydney, Australia, became “a standalone entity.”
While IMW’s attempts to reach Intoll for a comment were unsuccessful, a Intoll spokesperson told The Age yesterday that the company would pay the entire settlement because “the reset convertible notes were used to fund the original investment in Westlink M7, an asset which sits within the Intoll portfolio…The Intoll entities were the defendants, therefore it is Intoll which has reached this settlement.”
The Australian publication notes that the OTTP was suing MIG for $71 million plus additional costs as a result of the alleged losses. Last October, the teachers’ retirement scheme liquidated its $342 million just months before the Macquarie division.
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