MONTREAL, Aug. 11, 2014 /CNW Telbec/ - SNC-Lavalin Inc. (TSX: SNC) today
announced that, following a competitive process, it has reached an
agreement to sell its 21 percent interest (economic) in Astoria Project
Partners LLC (Astoria I) . This transaction is subject to customary
adjustments, closing conditions, regulatory approvals and the
provisions of the Astoria I governing documents. Astoria Project
Partners LLC, through its wholly owned subsidiary, owns and operates a
gas-fired combined-cycle power plant in Queens, New York City.
The agreement to sell SNC-Lavalin's interest in Astoria I is 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 (ICI)
to unlock and create value that supports its future growth as a Tier-1
services provider in key engineering and construction (E&C) markets.
The Company is currently targeting accelerated development in its
Resources (Oil & Gas, Mining & Metallurgy), Environment & Water Group,
Infrastructure Group and Power Group, with a geographic emphasis on
North America, South America and the Middle East.
"We are pleased with the outcome of this process," said Hisham Mahmoud,
President, Infrastructure, SNC-Lavalin Group Inc. "This transaction is
consistent with our strategy to actively manage our investment
portfolio to support our growth strategy and maximize value for our
shareholders. We will continue to leverage our resources to further
develop infrastructure investments and grow our E&C business."
SNC-Lavalin and its partners began work on Astoria I in 2004. Like
Astoria II, its younger twin thermal power station, Astoria I provides
affordable, clean and reliable power to New York City and its
customers. The 550-MW natural gas-fired combined-cycle power plant,
which commenced commercial operation in May 2006, serves the Astoria
load pocket through a 10-year power purchase agreement (through April
2016) with Consolidated Edison Company of New York.
"The development and divestment of Astoria I is another successful
example of our ICI strategy," said Gerry Grigoropoulos, Managing
Director, Infrastructure Concession Investments, SNC-Lavalin Group,
Inc. "This has been a successful project from its launch over a decade
ago through the whole lifecycle, including construction and operations
of the facility. Astoria I paved the way for Astoria II, and the
collective expertise we acquired on these assets has provided us with
significant insight into the power industry and helped position us for
further E&C growth opportunities."
Today's announcement comes approximately three months after the
Company's binding agreement disclosed on May 1, 2014, to sell 100
percent of its interest in AltaLink, Canada's largest regulated
electricity transmission company. It also follows financial close
reached in late 2013 on the sale of 66 percent of SNC-Lavalin's
minority interest in Astoria Project Partners II LLC (Astoria II).
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 40 countries, SNC-Lavalin's 30,000
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
For further information:
Public Relations Manager, Global Corporate Communications
SNC-Lavalin Group Inc.
514-393-8000, ext. 54772
Vice-President, Investor Relations
SNC-Lavalin Group Inc.
514-393-8000, ext. 57553