Transaction unlocks significant value in support of the Company's
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
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
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
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
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
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
For further information:
Public Relations Manager, Global Corporate
SNC-Lavalin Group Inc.
514-393-8000, ext. 54772
Vice-President, Investor Relations
SNC-Lavalin Group Inc.
514-393-8000, ext. 57553