MONTREAL - SNC-Lavalin Inc. (TSX:T.SNC, Stock Forum) is selling 66 per cent of its minority interest in Astoria Project Partners II LLC, which owns and operates the gas-fired Astoria II power plant in New York City.
Financial terms of the deal have not been disclosed.
The Quebec-based engineering giant says the move is part of its strategic plan announced at the company's annual general meeting in May to focus on the resources sector, including oil and gas, mining and metallurgy and environment and water.
“The agreement to sell a part of its minority interest in Astoria II is in line with the company's strategic plan to monetize a portion of its mature infrastructure concession investments, also announced at the AGM,” it said in a release Wednesday.
SNC-Lavalin and its partners began construction of the Astoria II 575-MW thermal energy facility in July 2008.
“From overseeing financial close and construction, to several years of successful operation, SNC-Lavalin has now come full circle with Astoria II,” acting executive vice-president Gerry Grigoropoulos said in a statement.
“This sale would provide a good return on our monetized investment and represents the creation of value by selling certain investments when strategically and financially appropriate, and in rebalancing our portfolio of infrastructure concessions.”
SNC-Lavalin is one of the leading engineering and construction groups in the world and is currently active in some 100 countries.