SNC Lavalin hires financial advisers for sale of sake in 407 P3

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
SNC Lavalin hires financial advisers for sale of sake in 407 P3

SNC-Lavalin Group (SNC) has hired financial advisors BMO and HSBC for the sale of its stake in of one of the most profitable toll road around the world, the highway 407 in Toronto, Canada.

SNC spent C$175 million in 1999 for an equity stake of about 23 % in 407 International and sold around 6 % of its holding in 2002 for C$178.2 million. SNC now owns about 17 %, Spain's Ferrovial owns 43 % and Canada Pension Plan Investment Board (CPPIB), 40 %.

407 International has a 99-year concession since 1999 to operate the 108-kilometer (67-mile) bypass around Toronto.

According to analysts, the sale could fetch as much as C$3 billion ($2.5 billion).

SNC is also part of a concessionaire building an eastern expansion of the highway that will probably open to traffic by the end of 2015.

During the last month we have reported about two Canadian PPP projects awarded to the firm.

SNC-Lavalin companies provide engineering, procurement, construction, project management and project financing services to a variety of industry sectors, including agrifood, pharmaceuticals and biotechnology, hydrocarbons & chemicals, environment, heavy construction, mass transit, mining and metallurgy, power and water management.

Share this news