MONTREAL, Dec. 1, 2014 /CNW Telbec/ - SNC-Lavalin Inc.
(TSX: SNC) today announced that it has reached financial close on
the sale of its 100-percent equity stake in AltaLink, Alberta's largest regulated electricity
transmission company, to Berkshire Hathaway Energy. This follows
the receipt of regulatory approvals from the Alberta Utilities
Commission and approvals pursuant to the Competition Act and
Investment Canada Act. Based on the terms of the agreement, the
transaction values AltaLink at approximately CDN$7.2 billion and will result in gross proceeds
to SNC-Lavalin of approximately CDN$3.1
billion.
"The sale of AltaLink, just like the recent acquisition of
Kentz, represents a key milestone in our company's growth strategy
to become a Tier-1 engineering and construction services firm,"
said Robert G. Card, President and
CEO, SNC-Lavalin Group Inc. "AltaLink is a remarkable organization
whose employees have been a pleasure and honour to work with, and
we wish them well on their new journey under the very capable
direction of Berkshire Hathaway Energy. I'd also like to thank the
SNC-Lavalin, AltaLink and Berkshire Hathaway Energy teams for their
outstanding work during the closing process and the very positive
relationships developed by all. Thanks to them, we are concluding
on the originally announced schedule."
Part of the overall sale agreement will see SNC-Lavalin and
MidAmerican Transmission, a subsidiary of Berkshire Hathaway
Energy, develop engineering, procurement and construction
opportunities together within North
America, including emerging transmission investments.
MidAmerican Transmission has developed approximately $1.6 billion of transmission projects and has
considerable experience in traditional utility and stand-alone
transmission projects.
"We are pleased that we will bring together SNC-Lavalin's
E&C management strengths and MidAmerican Transmission's strong
track record of joint transmission projects with other entities, to
deliver long-term benefits to the communities they serve," said
Alexander Taylor, President, Power,
SNC-Lavalin Group Inc.
"Through the sale of AltaLink and other mature assets in our
infrastructure concession investments portfolio, SNC-Lavalin
continues to unlock and create substantial value with its fully
aligned, long-term strategic customer focus," said Gerry Grigoropoulos, Managing Director,
Infrastructure Concession Investments, SNC-Lavalin Group Inc. "This
transaction demonstrates how our full life-cycle expertise and
balanced approach to managing our concessions are maximizing
returns for our shareholders and allowing us to meet key strategic
objectives. Going forward, we will continue to be active in the ICI
space and to seek out new opportunities that will benefit all our
stakeholders."
Our commitment to Western
Canada
SNC-Lavalin has been building world-class
projects in Western Canada since
the mid-1970s. From top-tier hydro and oil sands projects, to
AltaLink's renowned transmission system, we are proud to continue
to make lasting contributions to Western
Canada that improve people's quality of life.
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 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