SNC-Lavalin to sell 407 International stake to CPPIB for $3.25 bln
SNC-Lavalin Group Inc (TSX: SNC) said it will proceed with the sale of a 10.01 percent stake in 407 International Inc, a Woodbridge, Ontario-based holder of a concession over 407 Express Toll Route (407 ETR), to Canada Pension Plan Investment Board (CPPIB). The deal, valued at $3.25 billion, is expected to close this month. It follows the dismissal by an Ontario court of an application by Ferrovial SA concerning its right of first refusal with respect to SNC-Lavalin's original sales agreement with OMERS Infrastructure. The agreement was cancelled in May. If the court decision is reversed, CPPIB, which holds 40 percent of 407 ETR, and Ferrovial, which holds 43.23 percent, agreed the sale to CPPIB will stand and that ownership stakes will be adjusted.
