Skip to main content

SNC-Lavalin Group Inc. said yesterday that it will invest $70-million (U.S.) for a 20-per-cent stake of Astoria Energy II, which is developing a natural gas power plant in New York City. Canada's biggest engineering company said the deal boosts the value of its infrastructure concession investments, an area seen having strong potential for growth thanks in part to heavy government stimulus spending on infrastructure programs. The move comes after SNC announced a big debt offering last week, partly to fund the "many infrastructure concession investment and business acquisitions opportunities" it sees. "The company is not only lowering its cost of debt capital but also building a war chest to fuel future growth," said Canaccord Adams analyst Yuri Lynk said in a recent note.

Interact with The Globe