The Canada Pension Plan Investment Board (CPPIB) is reportedly mulling over the possibility of selling its 30% shareholding in UK price comparison site Compare the Market.
A Sky News report said advisers are being lined up to evaluate a possible divestment by CPPIB, which acquired the stake in 2017 for £675 million.
Compare the Market is majority owned by BHL, which holds the other 70%.
According to a Sky News source, CPPIB, one of the biggest public sector pension funds in Canada, is not under any pressure to sell but would only proceed if an offer aligned with the comparison site’s future growth potential.
Insiders said CPPIB is likely to value its stake at up to 15 times Compare the Market’s earnings, which were reportedly around £300 million in profit in 2023. This could place the overall valuation of Compare the Market at approximately £4.5 billion, with CPPIB’s share worth an estimated £1.25 billion.
CPPIB is said to have tapped Goldman Sachs to explore a potential deal.
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