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
Media: Leslie Quinton Senior Vice-President, Global Corporate Communications
SNC-Lavalin Group Inc. 514-393-8000, ext. 57354
Investors: Denis Jasmin Vice-President, Investor Relations SNC-Lavalin Group
Inc. 514-393-8000, ext. 57553 firstname.lastname@example.org
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