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UPDATE 1-Chinese construction group to buy Canada's Aecon

Published 2017-10-26, 06:56 a/m
© Reuters.  UPDATE 1-Chinese construction group to buy Canada's Aecon
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(Adds details on the deal)

Oct 26 (Reuters) - Canadian construction company Aecon Group Inc ARE.TO said on Thursday it agreed to be bought by China's CCC International Holding Ltd in a deal with an enterprise value of C$1.51 billion ($1.18 billion).

CCCI is the overseas investment and financing arm of engineering and construction company China Communications Construction Co Ltd.

CCCI will pay C$20.37 per share in cash for each Aecon share, a premium of 42 percent to Aecon's share price on Aug. 24, a day before the Canadian company said it had engaged two financial advisers to explore a potential sale. deal will help Aecon, which helped build Toronto's iconic CN Tower and the Vancouver Sky Train, get access to capital to take up more larger and complex projects in Canada, the company said. has developed several large and medium-sized ports and navigation channels along China's coast and inland rivers and has actively participated in and competed for projects under external assistance and the international contracting projects.

BMO Capital Markets and TD Securities are acting as joint financial advisors to Aecon. Barclays (LON:BARC) is acting as financial advisor to CCCI. ($1 = C$1.28)

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