BBGI SICAV S.A. has announced that it has signed a strategic agreement with a subsidiary of SNC-Lavalin Group Inc. to invest in an investment vehicle which will hold substantial equity interests in five PPP projects in Canada. All assets are operational and classified as availability-based under the investment policy of the Company.
Furthermore, as part of the transaction and through the partnership, BBGI will benefit from a vend-in (pipeline) agreement that provides the partnership a right of first offer with respect to the potential future acquisition, of select interests in SNC-Lavalin’s pipeline of Canadian availability-based PPP projects currently under construction.
To facilitate the holding of the five project interests and such future acquisitions, a partnership has been established in which BBGI and SNC-Lavalin will hold 80 per cent and 20 per cent partnership interests, respectively, while a subsidiary of SNC-Lavalin will act as the Partnership GP.
At closing of the initial seed assets, the partnership will acquire holdings in the following operational assets currently held by SNC-Lavalin:
- William R. Bennett Bridge (Kelowna, B.C.);
- Southeast Stoney Trail (Calgary, Alberta);
- Restigouche Hospital Centre (Campbellton, New Brunswick); and
- Canada Line (Vancouver, B.C.)
The acquisition of the interests in the four operational seed assets described above is expected to close in the coming months. As a second stage, and subject to a number of project-specific conditions precedent being satisfied, it is expected that the partnership will acquire a holding in the McGill University Health Centre currently held by SNC-Lavalin.
The agreed total cash consideration payable by the company for the five initial project interests is expected to be approximately CA$208 million, which will be funded from the company’s existing cash resources and drawings under its extended credit facility.