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 solutions. www.snclavalin.com
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