April 5, 2019 / 12:05 PM / 17 days ago

SNC-Lavalin sells stake in toll highway operator for C$3.25 billion

FILE PHOTO: The SNC-Lavalin Group Inc., headquarters seen in Montreal, Quebec, Canada, February 12, 2019. REUTERS/Christinne Muschi/File Photo

(Reuters) - SNC-Lavalin said on Friday it would sell a 10 percent stake in a company that operates a toll highway in the Greater Toronto Area to the Ontario Municipal Employees Retirement System (Omers) for up to C$3.25 billion ($2.43 billion).

The Canadian construction and engineering firm said C$3 billion will be paid when the deal closes, expected within 2 months. The rest will be paid over a period of 10 years.

SNC, which is under pressure due to the simmering tensions between Saudi Arabia and Canada, as well as corruption charges at home, said it plans to use part of the deal proceeds to pay about C$600 million of loans.

SNC will retain 6.8 percent ownership of the highway management company after the deal closes.

Reporting by Shanti S Nair in Bengaluru

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