OMERS to acquire 10.01% stake in 407 International from SNC-Lavalin for C$3.25B

Lead Office

Toronto

Value

3.25 Billion CAD

On April 5, 2019, OMERS Infrastructure announced that it has agreed to acquire a 10.01% stake in 407 International from SNC-Lavalin for C$3.25 billion, including a C$3 billion payment upfront and C$250 million over a period of 10 years. 407 International holds a concession over 407 Express Toll Route, the world's first all-electronic, open-access highway that covers 108 km across the Greater Toronto Area. The transaction is expected to close in the second quarter of 2019 and is subject to regulatory approvals and shareholders rights.

SNC-Lavalin intends to use net proceeds from the acquisition to pay approximately C$600 million under a loan agreement with Caisse de dépôt et placement du Québec, and to execute its deleveraging plans.

OMERS Infrastructure manages global assets in infrastructure on behalf of OMERS. Based in Toronto, it invests in large-scale assets in sectors such as energy, transportation and government-regulated services.

SNC-Lavalin is a global project management company headquartered in Montreal. It provides project solutions such as capital investment, consulting, design, engineering and construction to clients in the oil and gas, mining, infrastructure and power industries.

McCarthy Tétrault LLP is advising OMERS with a team led by David Lever and Matthew Cumming that includes Jake Irwin, Paulina Bogdanova, Claire Lehan and Dilara Alpli (Business), Gordon Baird and D.J. Lynde (Financial Services), Jim Janetos (Projects), Vincent Yip, Daniel Glover and Benjamin Lai (Intellectual Property), Douglas Cannon, Stefanie Morand and Justin Shoemaker (Tax), Gregory Winfield (Pensions), James Kelsall (Real Property & Planning) and Vivian Ntiri (Litigation).

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