EDMONTON, June 15 /CNW/ - Aecon Group Inc. (TSX: ARE) announced today that it has purchased 3,056,000 subscription receipts offered by Churchill Corporation (Churchill) under the terms of that company's recently filed short form prospectus dated June 8, 2010.
Aecon purchased the securities for total consideration of $51,188,000 at the offering price of $16.75. Under the terms of the offering, the Subscription Receipts are exchangeable, without the payment of further consideration, into an equivalent number of common shares of Churchill on the completion of Churchill's acquisition of Seacliff Construction Corp. which is expected on or before August 20, 2010.
As a result of the purchase, and including additional shares acquired through the facilities of The Toronto Stock Exchange, Aecon will, on the conversion of the Subscription Receipts, hold 3,513,600 common shares or approximately 14.9 percent of the outstanding common shares of Churchill Corporation.
"We made this investment because it is good value in a company and sector we know very well," said John M. Beck, Aecon's Chairman and Chief Executive Officer. "I believe this will give us the opportunity to explore areas of mutual interest over time. It is not our intention to acquire control of Churchill."
"We have great respect for Churchill's business and for its management team, and we have long had a view that there are many attractive potential synergies between parts of our two companies," said Scott Balfour, Aecon's President. "Churchill's recent bid for the purchase of Seacliff, and the resulting public offering of securities, provided an opportunity for us to support their transaction and their financing, at a price we believe to be attractive."
The information in this presentation includes certain forward-looking statements. These "forward-looking" statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. In addition to general global events outside Aecon's control, there are factors which could cause actual results, performance or achievements to vary from those expressed or inferred herein. Risk factors are discussed in greater detail in the section on "Risk Factors" in the Annual Information Form filed on March 31, 2010 and available at www.sedar.com. Forward-looking statements include information concerning possible or assumed future results of operations or financial position of Aecon, as well as statements preceded by, followed by, or that include the words "believes", "expects", "anticipates", "estimates", "projects", "intends", "should" or similar expressions. Important factors, in addition to those discussed in this document, could affect the future results of Aecon and could cause those results to differ materially from those expressed in any forward-looking statements.
SOURCE Aecon Group Inc.
For further information: For further information: Mitch Patten, Senior Vice President, Corporate Affairs, Aecon Group Inc., 416-297-2615, email@example.com; www.aecon.com