Aecon agrees to acquisition

Canadian developer Aecon has entered into a definitive agreement to be acquired after its directors unanimously recommended the $1.5bn transaction.

The firm is to be acquired by CCCI, the overseas investment and financing arm and a wholly-owned subsidiary of China Communications Construction Company (CCCC), one of the world's largest engineering and construction groups.

CCCI offered $20.37 per share in cash, representing a 42% premium to Aecon's unaffected share price on August 24, 2017.

"We believe this is a very positive outcome for Aecon and our key stakeholders," said Brian Tobin, Aecon's chairman. "This transaction is the result of an active and diligent sale process that has enabled us to select an outstanding partner and create significant shareholder value."

CCCI president, Lu Jianzhong, added: "This is an excellent fit for both of our companies.”

BMO Capital Markets and TD Securities are acting as joint financial advisors to Aecon and have each provided an opinion to the board of directors. Barclays is acting as financial advisor to CCCI. Davies Ward Phillips & Vineberg is acting as legal counsel to Aecon and Blake, Cassels & Graydon is acting as legal counsel to CCCI.