Canada Pension Plan buys stake in Enstar

The Canada Pension Plan Investment Board has acquired a 9.9 percent stake in run-off specialist Enstar.

CPPIB acquired the 1.9 million voting and non-voting ordinary shares from private equity firm First Reserve. The transaction is expected to complete next week.

The board will be granted contractual shareholder rights, including a board representation right.

Ken Moore, managing director of First Reserve and a member of Enstar's board of directors, will step down from Enstar's board upon completion of the transaction.

Dominic Silvester, Enstar's chief executive officer, said: “We are gratified by CPPIB's interest in Enstar and are pleased that they have pursued the acquisition of a significant stake in our company.

“We have known the team at CPPIB for several years and have tremendous respect for their organisation. I believe that they will be a valuable partner for Enstar, and we look forward to a long and productive relationship together."