The Montreal-based construction giant is selling 10.01 per cent of the Ontario toll highway; it will retain a 6.76 per cent stake. The sale comes as SNC-Lavalin faces multiple potential corruption-related charges and significant financial difficulties. The company’s stock fell 30 percent from $48.50 in late January to $33.92 at close Friday. (Canadian Press)
Skip to content
The Montreal-based construction giant is selling 10.01 per cent of the Ontario toll highway; it will retain a 6.76 per cent stake. The sale comes as SNC-Lavalin faces multiple potential corruption-related charges and significant financial difficulties. The company’s stock fell 30 percent from $48.50 in late January to $33.92 at close Friday. (Canadian Press)
Talking point: Highway 407 was a lucrative revenue stream for SNC-Lavalin, with CIBC calling it a “cash cow” in 2017. However, the company needed a cash infusion now, which it’s getting under the terms of the deal: $3 billion at close, plus $250 million over 10 years. That cash can cushion SNC-Lavalin if it is barred from bidding on federal contracts, it could also help the company if it pulls out of Saudi Arabia in the wake of the kingdom’s diplomatic tensions with Canada.
Loading...
Thanks for sharing!
You have shared 5 articles this month and reached the maximum amount of shares available.
CloseThis account has reached its share limit.
If you would like to purchase a sharing license please contact The Logic support at [email protected].
CloseGift the full article!
You have gifted 0 article(s) this month and have 5 remaining.
Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.
Most Popular This Week
In-depth, agenda-setting reporting
Great journalism delivered straight to your inbox.
Commentary
Carmichael: Canada’s biggest companies aren’t wired for growth. That’s a problem for us all
Briefing
Stellantis considering selling Ontario factory, union says
Intellectual property from failed New Brunswick nuclear developer sold to Ontario’s Nuclea Energy
Drone maker Volatus reports revenue dip as it struggles with its supply chains
Best business newsletter in Canada
Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.
Exclusive events
See the bigger picture with reporters and industry experts in subscriber-exclusive events.
Membership in The Logic Council
Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.
