A deal is close to being agreed to sell Montreal Gateway Terminals Partnership to a group led by Fiera Axium Infrastructure Canada, according to reports from Bloomberg.
The agreement will see Morgan Stanley’s infrastructure arm sell the terminal partnership to Fiera Axium in a deal estimated to be valued at nearly US$520m.
An announcement of the deal is expected in the coming days following a competition review by the Canadian government. The deal follows on from on-going negotiations last year that broke down over valuation and were brought back on track after a decade-long extension was granted on the 25-year contract Montreal Gateway Terminals has at the port.
The portofolio management firm Fiera Axium, partly owned by Montreal-based Fiera Capital Corp. and Axium Infrastructure Management focus on investing in energy, transportation and other assets in Canada and the U.S. The company is expected to take over Morgan Stanley Infrastructure Partners stake in Montreal Gateway Terminals that was acquired in 2013.