MONTREAL, Oct. 2, 2014 /CNW Telbec/ - SNC-Lavalin (TSX: SNC) today announced that it has sold its 100-percent interest in Groupe immobilier Ovation to Quebec City-based Industrial Alliance Insurance and Financial Services Inc. Groupe immobilier Ovation owns the concession rights to Montreal's Maison symphonique concert hall, the permanent home of the Montreal Symphony Orchestra.

In 2009, Quebec's Ministère de la Culture et des Communications partnered with Groupe immobilier Ovation to finance, design, build and operate the Maison symphonique under a public-private partnership (P3) procurement model. Completed on budget and on schedule in 2011, the 2,100-seat concert hall was designed and built to meet the highest standards for acoustics, stage design and architecture.

SNC-Lavalin will continue to provide operations and maintenance services for this landmark asset and its new owner, Industrial Alliance, until 2038. At that point, the public-sector partner, the Government of Quebec, will assume full responsibility of the concert hall.

"SNC-Lavalin is extremely proud to have provided the funding, design, construction, and operations and maintenance for this iconic Montreal landmark that has contributed significantly to the city's cultural experience," said Hisham Mahmoud, President, Infrastructure, SNC‑Lavalin Group Inc. "We play an important role in Montreal's community, culture and arts through projects like this one, as well as community investments. SNC-Lavalin is pleased to enter into this transaction with Industrial Alliance and to continue our engagement for the operations and maintenance of this world-class facility for the next 24 years."

"The acquisition of Groupe immobilier Ovation is in line with our long-term investment strategy," said Michel Tremblay, Executive Vice-President and Chief Investment Officer at Industrial Alliance. "We are proud of our partnership with Quebec's Ministère de la Culture et des Communications and will do everything possible to ensure the success of this initiative. Industrial Alliance is also happy to have the opportunity to work closely with two other major partners, the Montreal Symphony Orchestra and Place des Arts."

The purchase price of the sale is approximately $77.6 million, which will be paid using a combination of cash and assumption of debt. The sale of Groupe immobilier Ovation is an example of how SNC-Lavalin is managing its portfolio of infrastructure concession investments to support its strategic transformation into a global Tier-1 engineering and construction firm.

About Industrial Alliance
Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. operates throughout Canada as well as in the United States. The Company offers life and health insurance, mutual and segregated funds, savings and retirement plans, securities, auto and home insurance, mortgage and car loans and other financial products and services for both individuals and groups. Ranked among the top four life and health insurance companies in Canada, Industrial Alliance is one of Canada's largest public companies and trades on the Toronto Stock Exchange under the ticker symbol IAG.
http://www.inalco.com

About SNC-Lavalin
Founded in 1911, SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure. From offices in over 50 countries, SNC-Lavalin's 45,000 employees provide EPC and EPCM services to clients in a variety of industry sectors, including mining and metallurgy, oil and gas, environment and water, infrastructure and clean power. SNC-Lavalin can also combine these services with its financing and operations and maintenance capabilities to provide complete end-to-end project solutions.
www.snclavalin.com

 

SOURCE SNC-Lavalin

Copyright 2014 Canada NewsWire

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