Stephen Jarislowsky, a former director of SNC-Lavalin Group Inc. and one of Canada's most outspoken investment managers, is demanding a shareholder vote on the company's decision to sell the bulk of its stake in Ontario’s 407 toll highway operator for $3.25 billion. Jarislowsky likened the investment in the toll highway to a government bond and said it promises higher profits as Toronto-area road traffic increases, estimating its value would double in 10 years. “In effect, SNC-Lavalin as valued today is not an engineering company,” Jarislowsky said, less than two years after the firm’s purchase of British engineering giant WS Atkins. The deal will see the OMERS pension plan buy a 10.01 per cent stake in 407 International Inc., reducing SNC-Lavalin’s interest to 6.76 per cent. SNC-Lavalin plans to use the proceeds from the 407 deal to bolster its balance sheet and help pay down a $1.5-billion loan from the Caisse, Quebec’s pension fund manager.

Source: thestar April 30, 2019 15:15 UTC