UAE’s Kentech Agrees to Buy Energy Unit of Canada’s SNC Lavalin
- Kentech CEO Gilley sees possibility of IPO for merged company
- HSBC providing receivables financing for Kentech’s acquisition
SNC-Lavalin headquarters in Montreal.
Photographer: Christinne Muschi/BloombergThis article is for subscribers only.
Canada’s SNC-Lavalin Group agreed to sell its oil and natural gas services business to Kentech Corporate Holdings Ltd., as the Dubai-based firm seeks to expand in markets such as the U.S. and Saudi Arabia.
The sale is expected to be completed in the second quarter and will create a business with a project backlog of $1.1 billion, Kentech Chief Executive Officer John Gilley said in an interview. Kentech, which didn’t disclose deal terms, will finance the transaction with equity and debt, he said.