TransAxio Highway Concession Inc. yanked its planned IPO off the table, citing adverse market conditions.
However, many investors questioned the offering price as too steep, considering the capital would have gone to its holding company SNC-Lavalin and the primary asset, a stake in the Toronto 407 toll highway, was overvalued.
The decision could also have been influenced by the big deal signed earlier this week.
On Monday, SNC-Lavalin signed a $587 million contract to design and build the Waneta Expansion, a 335 MW hydroelectric power facility on the Pend d’Oreille River just south of Trail, British Columbia. The project will provide clean power to British Columbia while stimulating the local economy throughout the execution of the project.
“We have been involved in all three expansion projects in the region; the 185 MW Arrow Lakes Generating Station, the 120 MW Brilliant Expansion Project and now the Waneta Expansion Project,” said Patrick Lamarre, Executive Vice-President, SNC-Lavalin Group Inc.
“We are excited to continue our relationship with CPC and CBT and look forward to working with Fortis Inc. and to further expand our existing hydro expertise in British Columbia as part of our green energy plan.”
The project is through a limited partnership of Fortis Inc, Columbia Power Corporation (CPC) and Columbia Basin Trust (CBT). Engineering and construction work is already underway and the new facility is expected to go into commercial operation in spring 2015.
Source: SNC-Lavalin
However, many investors questioned the offering price as too steep, considering the capital would have gone to its holding company SNC-Lavalin and the primary asset, a stake in the Toronto 407 toll highway, was overvalued.
The decision could also have been influenced by the big deal signed earlier this week.
On Monday, SNC-Lavalin signed a $587 million contract to design and build the Waneta Expansion, a 335 MW hydroelectric power facility on the Pend d’Oreille River just south of Trail, British Columbia. The project will provide clean power to British Columbia while stimulating the local economy throughout the execution of the project.
“We have been involved in all three expansion projects in the region; the 185 MW Arrow Lakes Generating Station, the 120 MW Brilliant Expansion Project and now the Waneta Expansion Project,” said Patrick Lamarre, Executive Vice-President, SNC-Lavalin Group Inc.
“We are excited to continue our relationship with CPC and CBT and look forward to working with Fortis Inc. and to further expand our existing hydro expertise in British Columbia as part of our green energy plan.”
The project is through a limited partnership of Fortis Inc, Columbia Power Corporation (CPC) and Columbia Basin Trust (CBT). Engineering and construction work is already underway and the new facility is expected to go into commercial operation in spring 2015.
Source: SNC-Lavalin
