SNC-Lavalin (TSX:SNC) is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services.
SNC-Lavalin To Acquire Remaining 23% Of Transmission Company AltaLink
Montreal-based SNC-Lavalin (TSE:SNC) said Friday it has agreed to acquire the remaining 23.08% of AltaLink it does not already own from Macquarie Essential Assets Partnership. Financial terms of the transaction were not disclosed.
AltaLink, based in Calgary, Alberta, is responsible for the maintenance and operation of about 11,800 kilometres of transmission lines and 270 substations in Alberta. It owns more than half of Alberta's transmission grid and serves 85 per cent of its population.
SNC-Lavalin first made the offer on January 20 by exercising its right of first refusal, which grants SNC first consideration should Macquarie decide to sell its AltaLink stake, in response to a $213 million third-party offer.
SNC-Lavalin’s CFO, Gilles Laramée, said AltaLink is a “core investment” for the company, which makes infrastructure investments and provides construction consulting services.
“It has a proven track record, and we trust it will continue to provide excellent services to the people of Alberta,” he said.
The transaction is subject to approval by Alberta Utilities Commission and other customary closing conditions.
As of 12:22 pm EST, SNC-Lavalin’s shares are down about 0.6% to trade at $60.22.