Canada Pension Plan Investment Board is set to become the controlling shareholder in the 407 International Inc. highway after an Ontario court ruled in its favour, allowing it to buy a stake from embattled engineering firm SNC-Lavalin Group Inc. The court ruling marks the end of a conflict among the shareholders of the 108-kilometre highway. SNC announced in April it had agreed to sell the stake to OMERS, another Canadian pension fund.
SNC-Lavalin will get $3.25 billion in gross proceeds, of which $3 billion will be paid at the closing date and $250 million over 10 years, conditional on financial results for the 407 ETR, SNC said in the statement. Net proceeds will be used to reduce SNC’s leverage. SNC’s stock plunged to a 15-year low Tuesday after its largest shareholder said the firm’s performance is of “growing concern” following a series of profit warnings.
Hey thanks again there Mike Harris; paying Spain to drive on our own roads. Ford is going to be doing on certain 400 series. This is what happens when someone like Scheer or Kenny give advice to Ford! Trudeau is saving us and this moron is fighting it and us!
Great to see CPPIB making $$$ to keep CPP funded.