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.
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
For further information: Media: Louis-Antoine Paquin, Media Relations Manager, Global Corporate Communications, SNC-Lavalin Group Inc., 514-393-8000, ext. 54771, [email protected]; Investors: Denis Jasmin, Vice-President, Investor Relations, SNC-Lavalin Group Inc., 514-393-8000, ext. 57553, [email protected]