Business

SNC-Lavalin nixes sale of 407 stake to OMERS, will sell to other partners instead

SNC-Lavalin says it has terminated a deal to sell 10 per cent of Ontario toll highway 407 to the OMERS pension plan, and will instead sell the stake to another partner, Spanish transportation firm Ferrovial.
SNC-Lavalin plans to sell 10% of the 407 toll highway to someone for around $3 billion, but it's not exactly clear who yet.

SNC-Lavalin Group Inc. has cancelled the sale of part of its stake in 407 International Inc. to the OMERS pension plan.

The company says the Canada Pension Plan Investment Board, which already owns a 40 per cent stake in 407 International Inc., has exercised its right of first refusal.

Cintra Global S.E., a Spanish company that owns a 43.23 per cent stake in the toll highway, has also sought to exercise its right of first refusal, but SNC disputes its ability to do so under the circumstances.

The dispute in headed to the Ontario Superior Court with a hearing set for June 21.

However, the companies have agreed that following the court's decision, SNC-Lavalin will be permitted to sell the stake to either CPPIB alone or both CPPIB and Cintra under similar terms it agreed to with OMERS.

OMERS had agreed to buy a 10.01 per cent stake in 407 International Inc. for $3 billion plus an additional $250 million over 10 years, conditional on certain financial targets.