Article content

SNC-Lavalin Group Inc.’s attempt to sell a stake in a Toronto toll road is bumping into legal headaches, though the embattled construction firm says the transaction is still on track to proceed.

SNC terminated a deal to sell a 10 per cent stake in 407 International Inc., the 108-kilometre highway north of Toronto, to the OMERS pension fund for $3 billion in cash, the Montreal-based engineering firm said in a statement Friday. The move, which is subject to a later payment of a break fee of about $81.3 million, comes after Canada Pension Plan Investment Board exercised rights of first refusal on the proposed deal.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Fight for 407 Highway intensifies as SNC-Lavalin terminates deal with OMERS Back to video

Further complicating the matter, another of the toll-road owners, the Cintra Global unit of Ferrovial SA of Spain, wants to buy about 52 per cent of the stake SNC is selling. SNC contests its legal ability to do so, and the matter is going to court, with an expedite hearing scheduled June 21.