Chinese construction organisation CCCI to buy Canada’s Aecon for $1.5B
Aecon Group Inc. has sealed a understanding to be acquired for $1.5 billion by CCCC International Holding Ltd. of China, theme to shareholder and supervision approvals.
CCCC International has concluded to compensate $20.37 per Aecon share in money to buy a Canadian construction company, that pronounced in Aug that it was looking for intensity buyers.
“We trust this is a really certain outcome for Aecon and a pivotal stakeholders,” Aecon authority Brian Tobin pronounced in a matter Thursday.
“This transaction is a outcome of an active and committed sale routine that has enabled us to name an superb partner and emanate poignant shareholder value.”
Deal needs regulatory approval
Aecon shares sealed during $16.52 on a Toronto Stock Exchange on Wednesday.
CCCC International, also famous as CCCI, is a abroad investment and financing arm of China Communications Construction Company Ltd., one of a world’s largest engineering and construction groups.
Aecon will continue to be headquartered in Canada while CCCI’s distance and financial strength will assistance it bid for incomparable and some-more formidable projects, a companies said.
“Aecon has a clever supervision group and a really considerable lane record that have done it a heading construction association in Canada and a colonize in open private partnerships and benefaction operations,” CCCI boss Lu Jianzhong said.
It will now benefit entrance to poignant capital, interrelated infrastructure imagination and an general network to support a expansion ambitions.”
The offer requires a capitulation of two-thirds of a votes expel during a special assembly of Aecon shareholders as good as supervision and regulatory approvals underneath a Investment Canada Act, a Canadian Competition Act and authorities in China.
The proclamation of a understanding came as Aecon reported a third-quarter distinction of $24.6 million or 37 cents per diluted share, down from a distinction of $27.4 million or 42 cents per diluted share a year ago.
Revenue fell to $759.7 million compared with $838.1 million in a same entertain final year.
Article source: http://www.cbc.ca/news/business/aecon-ccci-takeover-1.4372766?cmp=rss