MONTREAL, Aug. 11, 2014 /CNW Telbec/ - SNC-Lavalin Inc.
(TSX: SNC) today announced that, following a competitive process,
it has reached an agreement to sell its 21 percent interest
(economic) in Astoria Project Partners LLC (Astoria I) . This
transaction is subject to customary adjustments, closing
conditions, regulatory approvals and the provisions of the Astoria
I governing documents. Astoria Project Partners LLC, through its
wholly owned subsidiary, owns and operates a gas-fired
combined-cycle power plant in Queens, New
York City.
The agreement to sell SNC-Lavalin's interest in Astoria I is
another significant step in the execution of the Company's
Strategic Plan. Announced in May
2013, SNC-Lavalin's Strategic Plan involves actively
managing its portfolio of infrastructure concession investments
(ICI) to unlock and create value that supports its future growth as
a Tier-1 services provider in key engineering and construction
(E&C) markets. The Company is currently targeting accelerated
development in its Resources (Oil & Gas, Mining &
Metallurgy), Environment & Water Group, Infrastructure Group
and Power Group, with a geographic emphasis on North America, South
America and the Middle
East.
"We are pleased with the outcome of this process," said
Hisham Mahmoud, President,
Infrastructure, SNC-Lavalin Group Inc. "This transaction is
consistent with our strategy to actively manage our investment
portfolio to support our growth strategy and maximize value for our
shareholders. We will continue to leverage our resources to further
develop infrastructure investments and grow our E&C
business."
SNC-Lavalin and its partners began work on Astoria I in 2004.
Like Astoria II, its younger twin thermal power station, Astoria I
provides affordable, clean and reliable power to New York City and its customers. The 550-MW
natural gas-fired combined-cycle power plant, which commenced
commercial operation in May 2006,
serves the Astoria load pocket
through a 10-year power purchase agreement (through April 2016) with Consolidated Edison Company of
New York.
"The development and divestment of Astoria I is another
successful example of our ICI strategy," said Gerry Grigoropoulos, Managing Director,
Infrastructure Concession Investments, SNC-Lavalin Group, Inc.
"This has been a successful project from its launch over a decade
ago through the whole lifecycle, including construction and
operations of the facility. Astoria I paved the way for Astoria II,
and the collective expertise we acquired on these assets has
provided us with significant insight into the power industry and
helped position us for further E&C growth opportunities."
Today's announcement comes approximately three months after the
Company's binding agreement disclosed on May
1, 2014, to sell 100 percent of its interest in AltaLink,
Canada's largest regulated
electricity transmission company. It also follows financial close
reached in late 2013 on the sale of 66 percent of SNC-Lavalin's
minority interest in Astoria Project Partners II LLC (Astoria
II).
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 40 countries,
SNC-Lavalin's 30,000 employees provide EPC and EPCM services to
clients in a variety of industry sectors, including mining and
metallurgy, oil and gas, environment and water, infrastructure and
clean 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
SOURCE SNC-Lavalin