SNC Lavalin sells minority stake in Trencap

Montreal-based engineering firm SNC Lavalin has sold its 11.1% stake in investment firm Trencap to Canadian pension, Caisse de Depot et placement du Quebec. The stake was sold for $116.5m.

Canadian engineering firm SNC Lavalin has sold its minority stake in investment firm Trencap to Caisse de Depot et placement du Quebec, a Canadian public pension plan.

The deal was done for approximately C$118 million (€83.7 million; $116.5 million), resulting in a gain of about C$27 million, SNC Lavalin said.

Trencap holds an indirect substantial interest in Canadian natural gas distributor Gaz Metro. 

The Montreal-based engineering and construction giant had held its 11.1 per cent equity interest in Trencap since June 2004.

Reports suggest the company decided to sell its stake because it was no longer seen as central to its strategy. 

Recently, SNC Lavalin decided to drop its plans to purchase additional shares in Toronto’s 407 toll road via an initial public offering of shares for its highway subsidiary, blaming it on adverse market conditions. The company already owns 17 percent of the toll road but had hoped to buy an additional 10 percent from Cintra, the toll road subsidiary of Spanish Infrastructure conglomerate Ferrovial. 

SNC Lavalin is a listed engineering and construction group and has offices across Canada and in over 35 other countries.