On December 20, 2019, Canada Development Investment Corporation (“CDEV”), on behalf of the Government of Canada, completed the sale of 90 per cent of Canada’s shares in Ridley Terminals Inc. (“RTI”) to 1210565 B.C. Ltd. (a joint venture of two US private equity firms – AMCI Group and Riverstone Holdings), as well as, the concurrent transfer of 10 per cent of the shares of RTI to Coast Tshimshian RTI Holdings Limited Partnership, a limited partnership owned by the Lax Kw’alaams Band and the Metlakatla First Nation. The sale price was C$350,000,000.
The transaction is the first Canadian privatization where local First Nations obtained an equity interest as part of the disposition. The First Nation participation will position the RTI transaction as one of the most important for 2019 and will have lasting significance for comparable transactions in the future.
The transaction resulted in one of the first joint ventures between US private equity and First Nations. Given the uncertainties associated with acquisitions of infrastructure, project and natural resource-based assets in Canada, this transaction can be used as a model of how to manage and structure similar private-sector acquisitions.
Fasken’s team was led by Kareen Zimmer (Sale Transaction) and Paul Wilson (First Nation Transactions). The team included Dierk Ullrich, Amy Carruthers, Enoch Chang, Marcus Turner, Clara Rozee, Matt Janssen (M&A), Zach Romano, Stephanie Sanger, Mary Wallace (First Nations & Environmental), Ian Cassie and Sarah Batut (Real Estate), Anthony Baldanza, Chris Margison, Jenna Ward, Justine Reisler (Competition), Clifford Sosnow (International Trade ), Lorene Novakowski (Privacy), Clayton Jones and Matthew Larsen (Employment & Benefits), Ross Gascho (Pensions & Benefits), and Michael Coburn (Tax).