ista International GmbH - Sarvana S.a.r.l.

- CVC Capital Partners Limited; Canada Pension Plan

Investment Board

Deal ID 840975 Announcement date 27/07/2017 Deal Value EUR 6230.3 m

ista International GmbH Completion date Pending Deal nature Recommended

Target
Deal types Acquisition, Auction, Cross border,
Bidder Sarvana S.a.r.l. Exit, Public, Transatlantic

Seller CVC Capital Partners Limited

Canada Pension Plan Investment Board

Sarvana S.a r.l. has agreed to acquire ista International GmbH from CVC Capital Partners Limited and Canada Pension Plan Investment Board.
Sarvana S.a r.l. is a Luxembourg-based joint venture company of Cheung Kong Infrastructure Holdings Limited and Cheung Kong Property Holdings Limited.
Cheung Kong Infrastructure Holdings Limited (CKI) is a listed Hong Kong-based diversified infrastructure group.
Cheung Kong Property Holdings Limited (CKPH) is a listed Hong Kong-based company engaged in property development and investment, hotel and serviced
suite operation, property and project management and investments in securities.
ista International GmbH is a Germany-based provider of metering systems and services, including accounting, billing, installation and energy service,
headquartered in Essen.
CVC Capital Partners Limited is the UK-based private equity firm, headquartered in London.
Canada Pension Plan Investment Board (CPPIB) is a Canada-based state-owned pension fund sponsor and private equity firm, headquartered in Toronto.
Terms: Sarvana will pay a total minimum consideration of approximately EUR 3.71bn. The consideration will include certain adjustment sums reflecting aggregate
amount of daily cash amounts and deductions of the upstream loans drawn by CVC and CPPIB and the leakage amounts notified by CVC and CPPIB to Sarvana.
Financing: CKPH and CKI will contribute maximum of EUR 2.925bn and EUR 1.575bn for the purpose of acquisition of ista. CKPH and CKI intends to finance
their relevant portion of the maximum financial commitment from their internal resources and/or external borrowings.
Termination Fee: Sarvana will pay a termination fee of EUR 200m in case either CVC or Sarvana terminates the transaction.
Rationale: The transaction will: Provide synergy effect to both CKPH and CKI and will allow them to share their management and strategic expertise in the
management and operation of ista. Enable CKPH with the valuable opportunity to invest in the European sub-metering market. The transaction is in line with CKIs
strategies of investing in infrastructure and infrastructure like opportunities around the world and embracing new growth opportunities through diversification.
Expected completion: The transaction is expected to close in the fourth quarter of 2017.
Conditions: Anti-trust approvals. German Federal Ministry of Economics and Energy approval. Customary regulatory approvals. CKPHs and CKIs shareholders
approval.
Background: The transaction has already been approved by Board of Directors of CKPH and CKI. The transaction was carried out through an auction process
which included several potential bidders including Canada Pension Plan Investment Board, Blackstone, Brookfield and Ontario Teachers' Pension Plan. Ista
reported net loss of EUR 4.24m in 2016 and has a workforce of more than 5,400 employees. Earlier in 2013, the management of ista, along with CVC and CPPIB
acquired the company in a management buy-out transaction, from Charterhouse Capital Partners LLP, the UK-based private equity firm, for a consideration of
EUR 3.1bn, including debt. CKPH and CKI own 65% and 35% stake respectively in Sarvana. CPPIB owns 18% stake in ista.
Source Links:
ista International GmbH press release, 27 July 2017
ista International GmbH press release, 27 July 2017 (German)
CVC Capital Partners Limited press release, 27 July 2017
Cheung Kong Infrastructure Holdings Limited stock exchange announcement, 27 July 2017
Cheung Kong Infrastructure Holdings Limited stock exchange announcement, 27 July 2017 (Chinese)
Cheung Kong Property Holdings Limited stock exchange announcement, 27 July 2017
Cheung Kong Property Holdings Limited stock exchange announcement, 27 July 2017 (Chinese)
Hengeler Mueller press release, 27 July 2017
Hengeler Mueller press release, 27 July 2017 (German)
Clifford Chance LLP press release, 28 July 2017
Clifford Chance LLP press release, 28 July 2017 (German)
ista International GmbH annual report Income Statement Balance Sheet

Target ista International GmbH

Description Germany-based provider of metering systems and services, including accounting, billing, installation and energy services

Sectors Computer software Subsectors Business support services

Industrial automation Industrial equipment and machinery
Industrial products and services Industrial measurement and sensing equipment
Services (other) Numeric and computerised control of machine tools
Process control equipment
Software development

Address Grugaplatz 4
Essen
North Rhine-Westphalia
Germany
Postcode 45131
Telephone +49 (201) 459 02
Fax +49 (201) 459 3630
Email info@ista.com
Bidder Sarvana S.a.r.l.
Description Luxembourg-based joint venture company of Cheung Kong Infrastructure Holdings Limited and Cheung Kong Property Holdings Limited

Sectors Construction Subsectors Heavy construction

Industrial products and services Rail stock and parts
Real Estate Real estate

Address Luxembourg

Seller CVC Capital Partners Limited

Description UK-based private equity firm that makes investments of minimum USD 150m in European companies, and USD 50m in Asian companies. It
seeks to acquire controlling or significant minority stakes in industrial and service businesses
Sectors Financial Services Subsectors Principal finance
Venture Capital/Private Equity

Address 111 Strand

London
Greater London
United Kingdom
Postcode WC2R 0AG
Telephone +44 20 7420 4200
Fax +44 20 7420 4231
Seller Canada Pension Plan Investment Board
Description Canada-based state-owned pension fund sponsor and private equity firm that invests in real estate, infrastructure projects, energy and natural
resources in the range of USD 200m to USD 1bn. The co-investments of CPPIB are targeted between USD 50m and USD 125m, and the
minimum investment is USD 25m
Sectors Financial Services Subsectors Principal finance
Sovereign Wealth Fund
Venture Capital/Private Equity

Address One Queen Street East

Suite 2500
Toronto
Ontario
Canada
Postcode M5C 2W5
Telephone +1 416 868 4075
Fax +1 416 868 8689
Email contact@cppib.com

Consideration Structure

Type Value Source

EUR (m)
Cash 3,709 Approximate. Cheung Kong Property Holdings
Limited stock exchange announcement, 27 July
2017
Total 3,709

Financials

Deal Financials Value Source

EUR (m)
Implied Equity Value 3,709 Cheung Kong Property Holdings Limited stock exchange announcement, 27 July 2017

Net Debt 2,521.3 As of 31 December 2016. ista International GmbH annual report

Enterprise Value 6,230.3 Cheung Kong Property Holdings Limited stock exchange announcement, 27 July 2017

Deal Value 6,230.3 Approximate. Cheung Kong Property Holdings Limited stock exchange announcement, 27 July 2017

Reported
Target Financials Year Ending Source Year Ending Source
EUR (m) 31/12/2016 31/12/2015
Revenue 850.4 ista International GmbH annual 810.4 ista International GmbH annual report 2016
report
EBITDA 370.1 Adjusted. ista International GmbH 340.2 Adjusted. ista International GmbH annual report
annual report 2016
EBIT 184.91 ista International GmbH annual 166.98 ista International GmbH annual report 2016
report
Earnings -4.24 ista International GmbH annual -18.98 ista International GmbH annual report 2016
report
Earnings Per Share - Not applicable - Not applicable

Exit Multiples Year Ending Year Ending

31/12/2016 31/12/2015
Revenue 7.3 x 7.7 x

EBITDA 16.8 x 18.3 x

EBIT 33.7 x 37.3 x

Earnings - -

Advisors

Role Company Credit% Individuals Level

Advisors to Target: ista International GmbH

Chief Financial Officer ista International GmbH 100 Dieter Hackenberg Level1
Chief Executive Officer ista International GmbH 100 Thomas Zinnocker Level1
Advisors to Bidder: Sarvana S.a.r.l.

Financial Advisor Platinum Securities Company Limited 35

RBC Capital Markets Inc 100 James Ireland Level1
The Anglo Chinese Group 100 Dennis Cassidy Level1
100 Raymond Ka Yiu Cheung Level4
100 Stephen Clark Level1
100 Jacky Wong Level4
100 Derek Wu Wei Yang Level4
Lawyer Baker McKenzie 100
Clifford Chance LLP 100 Diana Baer Level2 Intellectual Property
100 Marc Besen Level1 Competition
100 Werner Brickwedde Level2 Corporate
100 Philipp Buesch Level2 Corporate
100 Alexander Cappel Level2 Competition
100 Alexandra Diehl Level2 Intellectual Property
100 Fabio Diminich Level1 Corporate, Financing
100 Emma Folds Level1 (Lead)
Financing
100 Katharina Franitza Level2 Corporate
100 Regina Freckmann Level2 Corporate
100 Amrei Fuder Level2 Property
100 Bjoern C. Heinlein Level1 Corporate
100 Christian Keilich Level1 Property
100 Andrew Kelly Level2 Corporate, Financing
 100 Amelie Krause Level2 Corporate
100 Sebastian Lahner Level2 Corporate
100 Alexander Lang Level1 Corporate, Financing
100 Thorben Luhrmann Level2 Corporate
100 Caroline Lutz Level2 Corporate
100 Florian Mahler Level1 Financing
100 Zaid Mansour Level2 Corporate
100 Claudia Milbradt Level1 Intellectual Property
100 Frederik Muehl Level1 Corporate
100 Markus Muhs Level1 (Lead)
Corporate
100 Anselm Raddatz Level1 (Lead)
Corporate
100 Bahar Rahimyar Level2 Financing
100 Komal Raina Desaraju Level2 Financing
100 Gerson Raiser Level2 Competition
100 Philipp Schaeuble Level2 Employment
100 Tim Schreiber Level1 Competition
100 David Schwenneker Level2 Corporate
100 Dimitri Slobodenjuk Level2 Competition
100 Caroline Slusarek Level2 Competition
100 Alexander Weiss Level2 Competition
100 Martin Weitenberg Level2 Corporate
100 Florian Wiesner Level2 Competition
Accountant EY 100 Michael Adolf Level1 (Lead)
100 Jan Burchert Level2
100 Henrik Merz Level2
100 Stella Posnak Level2
Advisors to Seller: CVC Capital Partners Limited

Chief Financial Officer CVC Capital Partners Limited 100 Andy Haven Level1
Chairman CVC Capital Partners Limited 100 Steven Koltes Level1
In house lawyer CVC Capital Partners Limited 100 Lauren Livingston Level1 Corporate
Chairman CVC Capital Partners Limited 100 Donald Mackenzie Level1
Private Equity House CVC Capital Partners Limited 100 Marc Strobel Level1
Chairman CVC Capital Partners Limited 100 Rolly Van Rappard Level1
PR Finsbury Hering Schuppener 100 Hendrik Bender Level1
100 Phoebe Kebbel Level1
100 Matthias Schnettler Level1
Financial Advisor Goldman Sachs & Co. LLC 82
Lawyer Hengeler Mueller 100 Anja Balitzki Level2 Competition
100 Daniela Boening Level1 Financing
100 Cecilia Di Cio Level2 Corporate
100 Philipp Dornbach Level2 Corporate
100 Astrid Harmsen Level2 Intellectual Property
100 Christian Hoefs Level1 Employment
100 Vera Jungkind Level1 Intellectual Property
100 Marina Kederoglu Level2 Competition
100 Rhiannon Pugh Level2 Competition
100 Moritz Rademacher Level2 Corporate
100 Alexander Rang Level1 Corporate
100 Thomas Ruthemeyer Level2 Corporate
100 Andrea Schlaffge Level2 Intellectual Property
100 Caspar Schmelzer Level2 Corporate
100 Christian Schwandtner Level1 Corporate
 100 Achim Spengler Level2 Corporate
100 Christoph Stadler Level1 Competition
100 Emanuel P Strehle Level1 (Lead)
Corporate
100 Dirk Uwer Level1 Competition
100 Alexander von Jeinsen Level2 Financing
100 Susanne Walzer Level2 Employment
100 Hans-Joerg Ziegenhain Level1 (Lead)
Corporate
100 Daniel Zimmer Level2 Competition
Advisors to Seller: Canada Pension Plan Investment Board

Financial Advisor Bank of America Merrill Lynch 18

Private Equity House Canada Pension Plan Investment Board 100
Chief Financial Officer Canada Pension Plan Investment Board 100 Neil Beaumont Level1
Chief Executive Officer Canada Pension Plan Investment Board 100 Mark Machin Level1
In house lawyer Canada Pension Plan Investment Board 100 Patrice S Walch-Watson Level1 Corporate