MONTREAL, Aug. 15, 2019 /CNW Telbec/ - SNC-Lavalin
(TSX: SNC) is pleased to announce that it has completed the sale of
the 10.01% stake of 407 International Inc. ("Highway 407 ETR") to a
company controlled by Canada Pension Plan Investment Board
("CPPIB"). Based on the terms of the agreement, SNC-Lavalin
received on closing the base purchase price proceeds of
$3.0 billion, with up to an
additional $250 million contingently
payable over a period of 10 years, conditional on the attainment of
certain financial thresholds related to the ongoing performance of
Highway 407 ETR.
Net proceeds from this transaction will be used (i) for the
repayment of approximately $600
million under the CDPQ loan agreement; and (ii) for the
execution of the Company's deleveraging plans, including paying
down the revolving credit facility and the bridge loan.
"The closing of the sale is an important milestone for
SNC-Lavalin that contributes to a strengthening of our capital
structure. This de-leveraged capital structure will better position
us to deliver and execute on our recently announced new strategic
direction," said Ian L. Edwards,
Interim President and Chief Executive Officer, SNC-Lavalin.
"Proceeds from this transaction will enable SNC-Lavalin to
undertake our planned course of action designed to achieve
long-term financial strength."
"SNC-Lavalin retains a 6.76% stake in Highway 407 ETR, along
with a number of material investments in other Canadian assets,"
confirmed Stephanie Vaillancourt, Executive Vice-President,
Capital and Treasurer, SNC-Lavalin. "We believe that the value
realized through this transaction demonstrates the inherent value
in our Capital investments."
Following the closing of the deal, the shareholders of Highway
407 ETR will now consist of companies controlled by CPPIB owning
approximately 50.01% of the common shares, a subsidiary of Cintra
Global S.E., itself a subsidiary of Ferrovial S.A., with 43.23% of
the shares, and SNC-Lavalin, with 6.76% of the common shares.
About SNC-Lavalin
Founded in 1911, SNC-Lavalin is a global fully integrated
professional services and project management company and a major
player in the ownership of infrastructure. From offices around the
world, SNC-Lavalin's employees think beyond engineering. Our teams
provide comprehensive end-to-end project solutions – including
capital investment, consulting, design, engineering, construction
management, sustaining capital and operations and maintenance – to
clients across the EDPM (engineering, design and project
management), Infrastructure, Nuclear, and Resources businesses.
www.snclavalin.com
Forward-looking Statements
Statements made in this press release that describe the
Company's or management's estimates, expectations, forecasts,
objectives, predictions, projections of the future or strategies
may be "forward-looking statements", which can be identified by the
use of the conditional or forward-looking terminology such as
"aims", "anticipates", "assumes", "believes", "cost savings",
"estimates", "expects", "goal", "intends", "may", "plans",
"projects", "should", "synergies", "target", "vision", "will", or
the negative thereof or other variations thereon. Forward-looking
statements also include any other statements that do not refer to
historical facts, including those relating to the anticipated
future completion (including the timing thereof) of the sale by the
Company of 10.01% of the shares of 407 International Inc. described
in this press release as well as the benefits thereof to the
Company, including its financial position. All such forward-looking
statements are made pursuant to the "safe-harbour" provisions of
applicable Canadian securities laws. The Company cautions that, by
their nature, forward-looking statements involve risks and
uncertainties, and that its actual actions and/or results could
differ materially from those expressed or implied in such
forward-looking statements, or could affect the extent to which a
particular forward-looking statement materializes. Forward-looking
statements are presented for the purpose of assisting investors and
others in understanding certain key elements of the Company's
current objectives, strategic priorities, expectations and plans,
and in obtaining a better understanding of the Company's business
and anticipated operating environment. Readers are cautioned that
such information may not be appropriate for other purposes.
SOURCE SNC-Lavalin