SNC-Lavalin announced that it has completed the sale of the 10.01% equity stake of 407 International Inc. (owner of Highway 407 ETR concession) to a company controlled by Canada Pension Plan Investment Board (CPPIB).

Based on the terms of the agreement, SNC-Lavalin received on closing the base purchase price proceeds of CAD 3 billion (US$ 2.26 billion), with an additional CAD 250 million (US$ 188.34 million) contingently payable over a period of 10 years, conditional on the attainment of certain financial thresholds related to the ongoing performance of Highway 407 ETR.

Net proceeds from this transaction will be used (i) for the repayment of approximately CAD 600 million (US$ 452.02 million) under the CDPQ loan agreement; and (ii) for the execution of the Company’s deleveraging plans, including paying down the revolving credit facility and the bridge loan.

Following the closing of the deal, the shareholders of Highway 407 ETR will now consist of companies controlled by CPPIB owning approximately 50.01% of the common shares, a subsidiary of Cintra Global S.E., itself a subsidiary of Ferrovial S.A., with 43.23% of the shares, and SNC-Lavalin, with 6.76% of the common shares.