The Globe and Mail reports in its Wednesday edition that the legal wrangling over SNC-Lavalin's attempts to sell a share of Ontario's Highway 407 will continue with Ferrovial SA's decision to appeal a recent court decision that kept it from increasing its holding in the toll road.
The Globe's David Milstead and Nicolas Van Praet write that infrastructure company Ferrovial's Cintra Global subsidiary went to the Ontario Superior Court to keep the engineering giant from selling a portion of its 407 stake to the Canada Pension Plan Investment Board for $3.25-billion. Cintra said a past deal where it waived its right to buy the 407 shares should not apply. The Ferrovial subsidiary argued that CPPIB, as a major owner and operator of infrastructure projects, was a competitor. It failed to persuade the court.
Cintra has notified the Court of Appeal, SNC and CPPIB about its intention to appeal.
The sale provides some measure of relief for beleaguered SNC shareholders. SNC has said it intends to use the sale proceeds to pay down debt.
Previously, CPPIB held just over 40 per cent, with Cintra owning 43.2 per cent and SNC 16.8 per cent. SNC sold 10 per cent of the 407, giving it 6.8 per cent and CPPIB 50.01 per cent.
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