MONTREAL, Feb. 1, 2016 /CNW Telbec/ - SNC-Lavalin Group Inc. (TSX: SNC) announced today that it has reached an agreement to sell its indirect ownership interest in SNC-Lavalin (Malta) Limited ("SNCL Malta") to an affiliate of Flughafen Wien AG for cash consideration of approximately 63 million euros, pending the satisfaction of certain closing conditions by both parties and subject to working capital adjustments. This is expected to take place in the first half of 2016.
SNCL Malta has a 38.75% interest in Malta Mediterranean Link Consortium Limited ("MMLC") which in turn has a 40% interest in Malta International Airport plc ("MIA").
MMLC was formed in 2001 for the exclusive purpose of bidding on the Malta Airport privatization project initiated by the Government of Malta. MMLC was, ultimately, successful in winning the bid. As a result, SNC-Lavalin holds an indirect 15.5% interest in MIA, which manages the airport facility under a 65-year concession agreement.
"Throughout the life cycle of this transportation infrastructure project, as one of the consortium's founding partners, SNC-Lavalin has played an active part in helping develop the airport into a world-class facility," said Neil Bruce, President and CEO of SNC-Lavalin. "The sale of our interest in the Malta International Airport is consistent with our corporate strategy and our expectations. We plan to leverage this valuable experience and redeploy it into future global engineering and construction opportunities."
The agreement by SNC-Lavalin to sell its indirect ownership interest in SNCL Malta is in line with the company's strategic plan to target sustained growth in key markets and monetize some of its mature infrastructure concession investments.
"As one of the original strategic investors that has operated Malta International Airport for over 13 years, SNC-Lavalin is proud of its steadfast involvement in making it a successful venture for the Government of Malta and its people, and investment for our partners," said Chantal Sorel, Managing Director, SNC-Lavalin Capital. "We have seen the whole operation grow by leaps and bounds, and feel now is the opportune moment to exit our investment in, what has become, a mature operation."
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 are proud to build what matters. Our teams provide EPC and EPCM services to clients in a variety of industry sectors, including oil and gas, mining and metallurgy, infrastructure and 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
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