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The offices of SNC Lavalin are seen in Montreal on Monday, March 26, 2012. SNC-Lavalin Group Inc. shares surged nearly 10 per cent after the company took steps to reduce risks by moving away from construction and oil to focus on its engineering services business. The shares gained $2.21 or 9.7 per cent to $25 in afternoon trading on the Toronto Stock Exchange after dipping to an intraday low of $22.62. The gains came after the Montreal-based company signed a deal to sell its resources oil and gas business to Kentech Corporate Holdings Ltd. The business, which represents about 90 per cent of SNC’s resources segment revenues, includes a backlog of $745 million and about 7,100 employees. The transaction is expected to close in the second quarter, subject to regulatory approvals and customary closing conditions. SNC said the oil and gas business will be classified as an “asset held for sale” in its fourth quarter of 2020 and is expected to result in a fair value write down in the range of $260 to $295 million. At closing, the company says the transaction is expected to generate a gain on the sale in excess of the fair value write […]
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