Canadian pension funds to exit UK's Associated British Ports in over $13 billion deal, FT reports

Feb 5 (Reuters) - Two Canadian pension funds plan to sell their stakes in Associated British Ports (ABP) in a deal that they hope will value the UK's biggest ports operator at more than 10 billion pounds ($13.63 billion), the Financial Times reported on Thursday.

The Canada Pension Plan Investment Board (CPPIB), which holds 34% of ABP, and the Ontario Municipal Employees Retirement System (OMERS), which owns 33%, have hired Morgan Stanley MS.N to explore a sale of their stakes, the newspaper said.

Asset manager Hermes, which owns about 6% of the group, could also sell its stake, the report added.

Reuters could not immediately confirm the report. ABP, CPPIB and OMERS declined to comment on the FT report. Hermes could not be reached for a comment.

A deal could be reached as soon as the second half of this year, although the talks remain at an early stage, the report said.

Other major shareholders include Singapore’s sovereign wealth fund, GIC, with a 20% stake, and the Kuwait Investment Authority’s Wren House Infrastructure, with a 10% stake, the report said.

ABP owns 21 ports in the UK, including the Humber and Southampton, and handles more than a quarter of all port industry volumes, according to its website. The port operator was taken private in 2006 by a group of investors.

($1 = 0.7339 pounds)