TORONTO, March 15,
2023 /CNW/ - Aecon Group Inc. (TSX: ARE)
("Aecon" or the "Company") announced today that it has entered into
an agreement with Connor, Clark & Lunn Infrastructure
("CC&L Infrastructure") to sell a 49.9 per cent minority
interest in the L.F. Wade International Airport (Bermuda International Airport) concessionaire,
Bermuda Skyport Corporation Limited ("Skyport"), for US$128.5 million.
Aecon Concessions will retain the management contract for the
airport and remain the controlling shareholder of Skyport, owning a
50.1 per cent interest. The transaction is subject to customary
closing conditions and is expected to close in the second quarter
of 2023.
"This transaction highlights the value of the Bermuda International Airport concession and
underlines the contribution of the Concessions' portfolio of
projects to Aecon," said Jean-Louis
Servranckx, President and Chief Executive Officer, Aecon
Group Inc. "Aecon continues to target a prudent balance sheet while
preserving capital for other long-term growth and concession
opportunities."
CC&L Infrastructure is an affiliate of Connor, Clark &
Lunn Financial Group, a Canadian asset management firm with over
C$100 billion of financial assets
under management. CC&L Infrastructure brings significant
experience partnering with international and local developers,
operators, and management teams with over 90 infrastructure
projects in North America and
other select creditworthy jurisdictions.
"We are very pleased to welcome CC&L Infrastructure as a
financial partner and look forward to working together to continue
to deliver value to Bermuda
through this award-winning airport," said Steve Nackan, Executive
Vice President and President, Aecon Concessions. "This
partnership demonstrates investor confidence in the future of
Bermuda's economy, including
post-pandemic recovery and tourism growth."
Solomon Partners is serving as exclusive financial advisor to
Aecon, and McCarthy Tétrault LLP is serving as legal counsel.
Skyport is a special-purpose company owned by Aecon Concessions,
responsible for the airport's operations, maintenance and
commercial functions, as well as coordinating the overall delivery
of the Bermuda International
Airport Redevelopment Project over a 30-year concession term that
commenced in 2017. Under a Government-to-Government/Public-Private
Partnership (P3) model, Aecon worked with the Canadian Commercial
Corporation and the Government of Bermuda to develop, finance, design, build,
operate and now maintain the new passenger terminal building, which
opened in December of 2020.
About Aecon
Aecon Group Inc. (TSX: ARE) is a national Canadian construction
and infrastructure development company with global experience and
is proud to be recognized as one of the Best 50 Corporate Citizens
in Canada. Aecon delivers
integrated solutions to private and public-sector clients through
its Construction segment in the Civil, Urban Transportation,
Nuclear, Utility and Industrial sectors, and provides project
development, financing, investment and management services through
its Concessions segment. Join our online community on Twitter,
LinkedIn, Facebook, Instagram and TikTok @AeconGroupInc.
Statement on Forward-Looking
Information
The information in this press release includes certain
forward-looking statements which may constitute
forward-looking information under applicable securities laws. These
forward-looking statements are based on currently available
competitive, financial and economic data and operating plans but
are subject to risks and uncertainties. Forward-looking statements
may include, without limitation, statements regarding the
operations, business, financial condition, expected financial
results, performance, prospects, ongoing objectives, strategies and
outlook for Aecon, including statements regarding: Aecon's sale of
a 49.9% interest in Skyport to CC&L Infrastructure, the
expected results therefrom and the anticipated closing thereof;
Aecon's target of a prudent balance sheet while preserving capital
for other long-term growth and concession opportunities; Aecon's
expectation that it and CC&L Infrastructure will work together
to continue to deliver value to Bermuda, and what the partnership between
Aecon and CC&L Infrastructure represents. Forward-looking
statements may in some cases be identified by words such as "may",
"will," "expects," "target," "future," "plans," "believes,"
"anticipates," "estimates," "projects," "intends," "should" or the
negative of these terms, or similar expressions. 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 risk that the transaction will not close; the
risk that Aecon will not achieve its targeted balance sheet
strength while preserving capital for other long-term growth and
concessions opportunity, the risk that Aecon and CC&L
Infrastructure will not be able to work together to continue to
deliver value to Bermuda through
the airport and various other risk factors described in Aecon's
filings with the securities regulatory authorities which are
available under Aecon's profile on SEDAR
(www.sedar.com) including the risk factors described
in Section 13 - "Risk Factors" in Aecon's December 31, 2022 Management's Discussion and
Analysis filed on SEDAR (www.sedar.com) on February 28, 2023.
These forward-looking statements are based on a variety of
factors and assumptions including, but not limited to that: none of
the risks identified above materialize, there are no unforeseen
changes to economic and market conditions, no negative changes
regarding post-pandemic recovery and tourism growth at the
Bermuda airport and no significant
events occur outside the ordinary course of business. These
assumptions are based on information currently available to Aecon,
including information obtained from third-party sources. While the
Company believes that such third-party sources are reliable sources
of information, the Company has not independently verified the
information. The Company has not ascertained the validity or
accuracy of the underlying economic assumptions contained in such
information from third-party sources and hereby disclaims any
responsibility or liability whatsoever in respect of any
information obtained from third-party sources.
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.