SNC-Lavalin enters into agreement to sell 66 percent of its interest in Astoria Project Partners II
MONTREAL, Sept. 4, 2013 /CNW Telbec/ - SNC-Lavalin Inc. (TSX: SNC) today announced that it has reached an agreement to sell 66 percent of its minority interest in Astoria Project Partners II LLC (Astoria II), the owner of the legal entity that owns and operates the Astoria II power plant in New York City. This transaction is subject to closing conditions, regulatory approvals and the provisions of the Astoria II governing documents.
As presented in SNC-Lavalin's strategic plan this past May, the Company is targeting growth in key markets with a focus on the resources sector, including oil and gas, mining and metallurgy, and environment and water. It will also seek sustained growth in its existing world-class Clean Power and Infrastructure business, while continuing to move forward with its fully integrated services strategy, including project financing, engineering, construction and operations and maintenance. The agreement to sell a part of its minority interest in Astoria II is in line with the Company's strategic plan to monetize a portion of its mature infrastructure concession investments, also announced at the AGM.
SNC-Lavalin's investment in Astoria II was a catalyst for creating engineering and construction project work. In July 2008, SNC-Lavalin and its partners began construction of the Astoria II 575-MW thermal energy facility. In September 2011, industry trade magazine Power named Astoria II a top gas-fired plant, citing SNC-Lavalin's skilled design and construction work in a dense urban setting. The New York Power Authority has also recognized Astoria II as one of the cleanest and most efficient power plants in New York City's history.
"From overseeing financial close and construction, to several years of successful operation, SNC-Lavalin has now come full circle with Astoria II," said Gerry Grigoropoulos, Acting Executive Vice-President, Infrastructure Concession Investments, SNC-Lavalin Group Inc. "This sale would provide a good return on our monetized investment and represents the creation of value by selling certain investments when strategically and financially appropriate, and in rebalancing our portfolio of infrastructure concessions."
SNC-Lavalin is one of the leading engineering and construction groups in the world, and is a major player in the ownership of infrastructure and in the provision of operations and maintenance services. Founded in 1911, SNC-Lavalin has offices across Canada and in over 40 other countries around the world, and is currently active in some 100 countries. www.snclavalin.com