MONTREAL, Dec. 24, 2013 /CNW Telbec/ - SNC-Lavalin Inc. (TSX: SNC) today announced that it has reached financial close on the sale of 66 percent of its minority interest in Astoria Project Partners II LLC (Astoria II) to GPP New York LLC (GPP). The transaction amounts to USD $82.4 million. This follows the previously announced agreement by SNC-Lavalin to sell a portion of its minority interest in Astoria Project Partners II LLC, the owner of the legal entity that owns and operates the Astoria II power plant in New York City.
GPP is an affiliate of the privately-owned alternative asset management firm, Harbert Management Corporation, in Birmingham, Alabama. GPP was recently created as a North American energy investment fund which makes equity investments in power assets.
In 2008, SNC-Lavalin and its partners began construction of Astoria II, a 575-megawatt natural gas-fired, combined-cycle generation facility. It went into commercial operation in 2011, under a 20-year full tolling agreement to sell its output of power to the New York Power Authority (NYPA). NYPA, the largest state public power organization in the United States, recognized Astoria II as one of the cleanest and most efficient power plants in New York City's history.
"Astoria II has come full circle from initial investment to successful operation," said Gerry Grigoropoulos, Acting Executive Vice-President, Infrastructure Concession Investments, SNC-Lavalin Group Inc. "This sale of the majority of our interest in Astoria II reflects our focused approach to actively manage our concessions portfolio. Our aim is to maximize returns during the full life cycle of investments, once the company's strategic objectives have been met."
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