Neil Bruce, president and CEO of SNC-Lavalin, listens to proceedings at the engineering company’s annual shareholders meeting in Montreal on Thursday, May 2, 2019. Executives at SNC-Lavalin Group Inc. continue to ponder a Plan B that could see the company break up ahead of a potential criminal conviction. THE CANADIAN PRESS/Paul Chiasson

SNC-Lavalin execs ponder company break-up at private shareholder luncheon

“Plan B” — what Montreal-based SNC might have to do if it can’t convince the government to grant a so-called remediation agreement

Executives at SNC-Lavalin Group Inc. continue to ponder a Plan B that could see the company break up ahead of a potential criminal conviction.

David Taylor of Toronto-based Taylor Asset Management, a shareholder of SNC-Lavalin, said the embattled engineering and construction firm’s CEO and chief financial officer discussed spinning off assets — which could include U.K.-based WS Atkins — at a private luncheon hosted by TD Securities in Toronto.

“They mentioned spinning off,” Taylor said in an interview, referring to chief executive Neil Bruce and chief financial officer Sylvain Girard.

READ MORE: SNC-Lavalin to step back from 15 countries, swear off fixed-price bids in mining

“They’ve got great assets within that are being punished and their good assets aren’t being valued properly. So they sort of hypothetically talked about crystallizing that value, and the only way you can really do that is to sell,” Taylor said.

The sitdown last Friday, first reported by the Globe and Mail, came a day after the company announced plans to wind down its operations in 15 countries and reported a $17-million loss in its latest quarter, precipitating a stock drop to new 10-year lows over the past few days.

The discussion floated an alternative to a possible plan that SNC-Lavalin laid out for federal prosecutors last fall where the company would split in two, move its offices to the United States within a year and eventually eliminate its Canadian workforce if it didn’t get a deal to avoid criminal prosecution.

Confidential documents, part of a PowerPoint presentation obtained by The Canadian Press in March, described something called “Plan B” — what Montreal-based SNC might have to do if it can’t convince the government to grant a so-called remediation agreement to avoid criminal proceedings in a fraud and corruption case related to projects in Libya.

SNC-Lavalin said in an email that it “continues to evaluate all possible scenarios to create maximum value for company shareholders.”

“We have publicly made it clear for several months that the company has a fiduciary obligation to its shareholders and employees to have a Plan B in place, retaining the services of external legal and financial advisers to help develop different scenarios for consideration,” the company stated.

“That said, no decision has yet been made, so it is premature to comment further on the subject.”

READ MORE:Few SNC-Lavalin rivals have been granted DPAs, contrary to CEO’s claims

SNC-Lavalin bought British engineering giant WS Atkins in 2017, which now has more than 10,000 employees in Britain.

SNC hopes to sell the bulk of its 16.77 per cent stake in Highway 407 to the OMERS pension plan, with a deal expected to close before the end of June.

Companies in this story: (TSX:SNC)

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

‘She’s my baby’: Lake Country man searches for missing parrot

The Senegal parrot escaped from her cage Wednesday evening in the Carr’s Landing area

Roots and Blues online festival live tonight on Black Press Media

Tune in to Black Press Media to watch the festival live Aug. 14, 15 and 16

Okanagan COVID-19 case count growth slows

BCCDC data shows a stark contrast between Okanagan-specific numbers released in July and August

Okanagan Correctional Centre outbreak due to training session: Interior Health

Interior Health said in a statement the staff members were at an off-site training session

COVID-19 exposure on WestJet flight to Kelowna

Those in WestJet flight 461 from Calgary to Kelowna were possibly exposed

‘Don’t kill my mom’: Ryan Reynolds calls on young British Columbians to be COVID-smart

‘Deadpool’ celebrity responds to premier’s call for social influence support

Shuswap dragon boaters honour teammate’s cancer-fighting accomplishments

Friends Abreast team provides special recognition outside Salmon Arm hospital

Expected fall peak of COVID-19 in Canada could overwhelm health systems: Tam

National modelling projections released Friday show an expected peak in cases this fall

Hundreds of sea lions to be killed on Columbia River in effort to save endangered fish

Nearly 22,000 comments received during public review were opposed, fewer than 200 were for

B.C.’s fuel suppliers to publish prices to provide accountability: minister

Bruce Ralston says move will ensure industry publicly accountable for unexplained prices increases

North Okanagan-Shuswap school district answers return-to-class questions

School District 83 shares current information ahead of its full safety plan

Okanagan connection to Canada’s favourite TV dog

There’s a voice, that keeps on calling me. Down the road, that’s… Continue reading

Man suffers serious injuries in bear attack in remote area near Lillooet

It was deemed a defensive attack, no efforts were made to locate the animal

87-year-old Salmon Arm woman sinks hole-in-one

The Aug. 12 ace is Helen Bobbitt’s fourth.

Most Read