SNC-Lavalin (TSX: SNC) is pleased to announce the launch of a new infrastructure investment vehicle, SNC-Lavalin Infrastructure Partners LP (“the Partnership”), established to efficiently redeploy capital back into development opportunities. This vehicle will hold SNC-Lavalin’s interests in a selection of its mature Canadian infrastructure assets and will allow the Company to monetize 80% of these infrastructure interests while retaining a 20% ownership, as well as the long-term management of these assets.
In addition, SNC-Lavalin has entered into a strategic agreement with a Canadian subsidiary of BBGI SICAV S.A. (LSE: BBGI) which will purchase 80% of the Partnership for approximately C$208 million for the initial five transferred assets, while a subsidiary of SNC-Lavalin will hold the remaining 20%.
“This is an important milestone for SNC-Lavalin Capital,” said Chantal Sorel, Managing Director, SNC-Lavalin Capital. “This new venture demonstrates SNC-Lavalin’s full life-cycle expertise and ability to create significant value with our long-term strategic customer focus. It reflects our active approach to managing our asset portfolio in a way that optimizes shareholder returns in keeping with the company’s strategic objectives. In addition, it sets the foundations to create new project financing vehicles that will support the development of our robust pipeline of projects.”
The Partnership will initially hold a portfolio comprised of SNC-Lavalin’s interests in the following five assets: the William R. Bennett Bridge (Kelowna, BC), the Canada Line (Vancouver, BC), the Southeast Stoney Trail (Calgary, AB), the Restigouche Hospital Centre (Campbellton, NB) and the MUHC Glen site (Montreal, QC).
SNC-Lavalin will act as the General Partner and as the Manager of the Partnership, and as such, it will continue to be the counterparty to the various stakeholders and partners in the transferred assets.
BMO Capital Markets is acting as exclusive financial adviser to SNC-Lavalin. Norton Rose Fulbright Canada LLP is acting as counsel to SNC-Lavalin and SNC-Lavalin Infrastructure Partners.
BBGI is a publicly listed Luxembourg-based investment company that invests in P3 infrastructure projects, with a global, geographically diversified portfolio of 39 high-quality infrastructure P3 assets.
Founded in 1911, SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure. From offices in over 50 countries, SNC-Lavalin’s employees are proud to build what matters. Our teams provide engineering, procurement, construction, completions and commissioning services together with a range of sustaining capital services to clients in four industry sectors: oil and gas, mining and metallurgy, infrastructure and power. SNC-Lavalin can also combine these services with its financing and operations and maintenance capabilities to provide complete end-to-end project solutions. www.snclavalin.com