The Canada Pension Plan and Ontario Teachers' Pension Plan, two of the biggest pension plans in Canada, set its sights on Australian-based toll road owner and operator group, Transurban.
Australia's super fund infrastructure asset strategy appears to be resonating with overseas pension funds, as Canada Pension Plan and Ontario Teachers' Pension Plan approached Transurban with an unsolicited indicative non-binding acquisition proposal on Friday.
As a result, Transurban's board and its advisers, Lazard and Mallesons, reviewed the proposal and rejected it on its current terms.
The board said, consistent with its fiduciary duties, it would engage bona fide proposals, which provide value and certainty to shareholders.
Transurban's share price rose nearly 20 per cent following the announcement to $5.24 per share. The group's share price increased slightly in today's morning trade to $5.57 per share.
The group's assets include the CityLink road in Melbourne and the Hills M2 in Sydney. Both roads are wholly owned by Transurban.