TORONTO, June 8, 2015 /CNW/ - Aecon Group Inc. (TSX:ARE) announced today that it has signed agreements with Grupo Odinsa S.A. and CCR S.A. to sell its 45.5 per cent interest in the Quito International Airport concessionaire, Corporaciσn Quiport S.A.(Quiport), for US$232.6 million.
The monetization of Aecon's investment is expected to generate approximate net cash proceeds (after transaction costs and estimated cash taxes) of US$195 million, and a pre-tax accounting gain of approximately US$14 million. The transaction is expected to close in the second half of 2015 and remains subject to third party approvals including anti-trust and lender approvals.
"The monetization of this asset is a testament to the value proposition of the Quito International Airport project, and to the value of our select participation in such public- private partnership projects both domestically and internationally," says Teri McKibbon, President and Chief Executive Officer, Aecon Group Inc. "We greatly appreciate the support of all of our partners and are proud to have had a leadership role in developing the most advanced airport in Latin America."
Together with its partners, Aecon developed and financed the airport and holds a 45.5 per cent stake in Quiport, the airport concessionaire. Aecon built the airport as part of a 50/50 joint venture engineer/procure/construct contract with Andrade Gutierrez Constructores S.A., a construction company based in Brazil.
"This project has an incredible history both as a landmark public-private partnership in Ecuador, and a remarkable greenfield airport built on a mountain plateau. It has been a pleasure working together with the people of Ecuador and the Canadian government to develop this successful project," said John M. Beck, Executive Chairman, Aecon Group Inc.
UBS Investment Bank served as exclusive financial advisor to Aecon on the transaction.
Aecon Group Inc. is a Canadian leader in construction and infrastructure development providing integrated turnkey services to private and public sector clients. Aecon is pleased to be consistently recognized as one of the Best Employers in Canada.
The information in this press release 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 events beyond Aecon's control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to: the timing of projects, unanticipated costs and expenses, general market and industry conditions and operational and reputational risks, including Large Project Risk and Contractual Factors. Readers are referred to the specific risk factors relating to and affecting Aecon's business and operations as filed by Aecon pursuant to applicable securities laws. Forward-looking statements may include, without limitation, statements regarding the operations, business, performance, prospects, strategies and outlook for Aecon. Forward-looking statements, may in some cases be identified by words such as "will," "plans," "believes," "expects," "anticipates," "estimates," "projects," "intends," "should" or the negative of these terms, or similar expressions. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Aecon Group Inc.
For further information: David Smales, EVP and Chief Financial Officer, Aecon Group Inc., 416-297-2619, [email protected], www.aecon.com