SNC-Lavalin to sell a 6.67% stake in Ontario's 407 Highway

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SNC-Lavalin has announced plans to sell part of Ontario’s 407 highway. With this sale, SNC-Lavalin expects to demonstrate the real value of the toll road. The sale of that size would reduce the company's ownership stake in the highway from 16.77% to about10%:

The move is expected to be taken as a way to remain an estrategic investor in the highway. This sale could translate into big money for the company. National Bank valued the stake around CAD2.2 billion (US$1.69 billion) pre-tax.

The sale process is still on early stages, and according to SNC it is expected to have a closure in its fourth quarter. If a transaction takes place, the proceeds would go towards repaying a loan; additionally, the company could look at possible share buybacks or mergers and acquisitions.

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