Canada-based engineering firm SNC-Lavalin has unveiled plans to invest in the 407 Express Toll Route (ETR) in Ontario, Canada.

SNC-Lavalin, which already owns a 16.8% stake in 407 ETR, said its subsidiary TransAxio Highway Concession will make an initial public offering to fund the amount needed for a 10% stake in the toll road.

However, CPPIB, which invests funds held by the Canada Pension Plan, recently said it plans to pay $894m to acquire 10% of the 407 ETR from majority owner Cintra Infraestructuras of Spain. This is in addition to the 30% stake that CPPIB will acquire indirectly, as part of its proposed acquisition of Australian toll operator Intoll Group.

Both SNC-Lavalin and Intoll have the right of first refusal to acquire the shares CPPIB is looking to purchase.

The deal is expected to be finalised in two months.