Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0778
    -0.0015 (-0.14%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2621
    -0.0001 (-0.01%)
     
  • USD/JPY

    151.3490
    -0.0230 (-0.02%)
     
  • Bitcoin USD

    70,239.80
    +552.62 (+0.79%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,379.92
    +211.85 (+0.53%)
     

SNC-Lavalin To Sell Stake In Ontario Toll Route For C$3.25 Billion

A judge cleared the way for Canadian engineering and construction conglomerate SNC-Lavalin (TSX: SNC) to sell a 10 percent stake in the company that operates the Highway 407 Electronic Toll Route (ETR) in the Toronto area for C$3.25 billion.

SNC-Lavalin announced the Ontario ruling on August 7, which paves the way for the Canada Pension Plan Investment Board (CPPIB) to assume a controlling stake in 407 International.

CPIIB manages more than C$390 million (the Canadian dollar equals US 0.75) in assets for the Canada Pension Plan, the country's public retirement system and one of the world's largest private equity investors.

CPIIB in May blocked SNC-Lavalin's sale to OMERS, Ontario's public employee pension fund, on its right of first refusal.

The 67-mile stretch of highway covered by the 407 ETR is lucrative for its owners. It generated C$539 million in net income on revenues of C$1.27 billion in 2018.

The 407 ETR makes an arc around Toronto, from Burlington in the southwest to Hampton in the northeast. It can dramatically shave transit times in the Toronto area, though it is expensive for commercial vehicles – up to C$1.15 per kilometer for single heavy vehicles or C$1.73 for those with double trailers.

The sale will give a much-needed infusion of cash to Montreal-based SNC-Lavalin. The company has been shedding profits as it faces corruption charges in connection with contracts in Libya.

Image Sourced by Pixabay

See more from Benzinga

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement