SNC buys into Indian toll road

Article Excerpt

SNC-LAVALIN GROUP INC. $56 (Toronto symbol SNC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 151.2 million; Market cap: $8.5 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.2%; TSINetwork Rating: Average; www.snclavalin.com) has paid $37 million for an undisclosed stake in a private company that is building a toll highway in India. This is a small deal for SNC, which earned $128.2 million, or $0.84 a share, in the three months ended September 30, 2010. However, SNC has expertise in this area through its 16.77% stake in Ontario’s 407 toll highway. That will help make the Indian project more profitable, and cut its risk. SNC-Lavalin is a buy. buy…

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