The CPP Investment Board said Tuesday its sweetened takeover offer for Macquarie Communications Infrastructure Group has been approved by the Australian company's security holders.

The board said the $2.1-billion deal received overwhelming support.

The security holders signed onto the deal after the CPP Board increased the bid. The original offer of $2.50 a share was sweetened by 50 cents after equity markets staged a comeback between March and June.

"We are pleased that MCG's security holders voted overwhelmingly in favour of our proposal," the board said in a statement.

"As a long-term investor, we look forward to working with each MCG portfolio company management team to continue developing and growing their respective businesses."

Macquarie Group has communications infrastructure businesses in the United Kingdom and Australia, including:

• A 48 per cent stake in Arqiva, a national broadcast transmission provider and communication infrastructure owner in Britain.
• 50 per cent of Airwave, the only national provider of secure network access and communication technology to the U.K.'s emergency and public safety businesses.
• 100 per cent of Broadcast Australia, the biggest broadcast transmission provider in Australia.

The CPP board transaction reflects a trend in the Canadian pension sector as funds, including the Ontario teachers and OMERS plans in Ontario, seek more stable non-stock market investments in infrastructure and other sectors that can generate high returns.

The CPP board invests the surpluses generated by premiums paid by employees and employers to the federal Canada Pension Plan, which pays benefits to 17 million Canadians when they retire. The board operates separately and is managed independently, currently overseeing $105.5 billion in assets.

The board's portfolio is not used to pay pensions today, but in another 11 to 12 years, a small portion of the CPP fund's investment income will be needed to help pay retiree benefits.