Transaction unlocks significant value in support of the
Company's Strategic Plan
MONTREAL, May 1, 2014 /CNW Telbec/ - SNC-Lavalin (TSX: SNC)
is pleased to announce it has entered into a binding agreement to
sell 100 percent of its interest in AltaLink, Alberta's largest regulated electricity
transmission company, to Berkshire Hathaway Energy. Based on the
terms of the agreement and assuming a December 31, 2014 closing date, gross proceeds to
SNC-Lavalin from the sale will be approximately $3.2 billion.
The sale of AltaLink represents another significant step in the
execution of the Company's Strategic Plan. Announced in
May 2013, SNC-Lavalin's Strategic
Plan involves actively managing its portfolio of infrastructure
concession investments to unlock and create value that supports its
future growth as a Tier-1 services provider in key engineering and
construction (E&C) markets, among other objectives. The Company
is currently targeting accelerated development in its Resources
(Oil & Gas, Mining & Metallurgy and Environment &
Water), Infrastructure and Power E&C businesses, with a
geographic emphasis on North
America, South America and
the Middle East.
"After a robust process that drew considerable interest, we are
very pleased to announce a transaction that recognizes significant
value for AltaLink--a unique regulated asset in a high-growth
electricity market--while also providing for a continued
relationship with SNC-Lavalin. I would like to thank AltaLink's
employees, who have helped make their company so successful. I know
they will have a bright future and benefit from enhanced career
opportunities as part of Berkshire Hathaway Energy," said
Robert G. Card, President and Chief
Executive Officer, SNC-Lavalin Group Inc. "The sale of AltaLink
will help us build value for our Company by providing opportunities
to advance our E&C growth strategy. The use of capital will be
determined based on the best long-term interests of SNC-Lavalin,"
he added.
"Our excellent relationship over the past decade with AltaLink
allowed us to develop an outstanding asset, while growing our
engineering and construction team and maintaining strong expertise
in the transmission and distribution of energy--a sector in which
we aspire to be a global leader," added Gerry Grigoropoulos, Acting Executive
Vice-President, Infrastructure Concession Investments (ICI),
SNC-Lavalin Group Inc. "As such, this agreement is a successful
example of our ICI strategy, which focuses on maximizing the
synergies between our asset management expertise and project
capabilities to create value for our Company and its
shareholders."
SNC-Lavalin and MidAmerican Transmission, a
subsidiary of Berkshire Hathaway Energy, have also mutually agreed
to develop engineering, procurement and construction opportunities
in the US and Canada within independent system operators and
regional transmission organizations. Through the agreement, the
parties will look to emerging transmission investment opportunities
in these countries. The agreement combines the engineering
and construction management strengths of SNC-Lavalin with the
strong track record of MidAmerican Transmission on joint
transmission projects with other entities.
"We are pleased with our agreement with MidAmerican Transmission
to pursue transmission and distribution development opportunities,
which will allow us to enhance our existing energy infrastructure
investment portfolio," said Alexander
Taylor, President, Power, SNC-Lavalin Group Inc.
Completion of the sale is subject to customary regulatory
approvals, including approval by the Alberta Utilities Commission
and approvals pursuant to the Competition Act and Investment Canada
Act.
Morgan Stanley and RBC Capital Markets acted as financial
advisors to SNC-Lavalin on the AltaLink divestiture process, and
Norton Rose Fulbright Canada acted
as external legal advisors.
As SNC-Lavalin is in the process of finalizing its analysis of
the specific impacts of this transaction on the Company's financial
statements and results, it will provide a revised outlook and
guidance on a pro-forma basis giving effect to the transaction when
it announces and releases its financial and operating results for
the first quarter of 2014 on May 8,
2014.
An SNC-Lavalin representative is available for one-on-one media
interviews regarding this announcement.
About Berkshire Hathaway Energy
Berkshire Hathaway Energy owns a portfolio of locally managed
businesses that share a vision for the energy future, make
sustainable investments to achieve that vision, and had
$70 billion of assets as of
Dec. 31, 2013. These businesses
deliver safe, reliable service each day to more than 8.4 million
customers and end-users around the world and consistently rank high
among energy companies in customer satisfaction. Berkshire Hathaway
Energy is headquartered in Des Moines,
Iowa, U.S.A.
About MidAmerican Transmission
MidAmerican Transmission, a subsidiary of Berkshire Hathaway
Energy, is committed to the development and long-term ownership of
transmission lines throughout the U.S. and Canada. The company has
developed approximately $1.6 billion
of transmission projects at 345 kilovolts and higher and has
experience in traditional utility and stand-alone transmission
projects.
About SNC-Lavalin
SNC-Lavalin is one of the leading engineering and construction
groups in the world, and is a major player in the ownership of
infrastructure and in the provision of operations and maintenance
services. Founded in 1911, SNC-Lavalin has offices across Canada
and in over 40 other countries around the world, and is currently
active in some 100 countries. www.snclavalin.com
About AltaLink
Founded in 2002, AltaLink is Canada's only fully independent
transmission company. It maintains and operates approximately
12,000 kilometres of transmission lines and 280 substations in
Alberta. AltaLink also owns more
than half of Alberta's
transmission grid and delivers electricity to approximately 85
percent of the province's population's.
SOURCE SNC-Lavalin