MONTREAL • Canadian engineering giant SNC-Lavalin Inc. is selling its entire stake in Alberta electricity transmission company Altalink for about $3.2-billion in a deal priced far beyond what the market had been expecting.

The buyer is Berkshire Hathaway Energy, a US$70-billion holding company specializing in energy investments controlled by legendary investor Warren Buffett. The deal is expected to close by the end of the year.This is massive and the stock is going to rip as a result, said Maxim Sytchev, an analyst with Dundee Capital Markets in Toronto, noting even the highest estimates as to what Altalink could be worth undervalued it by $1-billion. [It proves SNCs ] hard assets are very, very attractive.

Robert Card, SNCs chief executive, is trying to steer Canadas largest engineering company past a debilitating corruption scandal that could yet result in a fine against the firm under anti-bribery legislation. Part of his new strategy for SNC will see it monetize part of its so-called infrastructure concession investments, like Altalink and Torontos Highway 407, and pump the proceeds to fund the companys core engineering and construction growth.

Mr. Card said the high price for Altalink was partly the result of a fair and tight sales process.

There were no leaks, Mr. Card said in an interview. We worked with the buyer community last summer on sort of getting people interested in the asset. I think we ran a good process and it allowed people the chance to really see the value of the asset. We think it was a fair value. Were happy with it.

SNC is weighing all of its concession investments that have reached maturity, Mr. Card said. It is currently seeking a buyer for its stake in Maltas airport but the next major divestiture could be its 16.7% stake in the 407 toll road.

Certainly 407 will be under consideration now and will have to go through the same [scrutiny] in terms of our needs and the market timing and whether we can capture full value, Mr. Card said. We think people are going to value it higher now.

Altalink became a fully-owned subsidiary of SNC-Lavalin in October 2011 at an implied value of about $6 per SNC share. The company, which owns and operates about half of Albertas high-voltage transmission grid, has seen its rate base, or the value of assets on which it can earn a return, triple since 2006.

SNC has not yet identified any specific use for the Altalink proceeds, Mr. Card said.

As part of its strategy, SNC wants to speed up its development in natural resources like oil and gas as well as infrastructure and power. Worldwide, it wants to emphasize growth in North America, South America and the Middle East.

SNC and Berkshire subsidiary MidAmerican Transmission have also mutually agreed to develop engineering, procurement and construction opportunitites in the United States and Canada within independent system operators and regional transmission organizations, SNC said. Under the deal, the parties will search for transmission investment opportunities.

SNC-Lavalin shares rose 7% to $53.06 in morning trading Friday on the Toronto Stock Exchange. The sales agreement was announced after the markets close Thursday.

Morgan Stanley and RBC Capital Markets acted as financial advisors to SNC-Lavalin in the sale. Norton Rose Fulbright Canada advised on legal matters.