July 21st, 2024

Oaktree Capital Management investing $150 million Aecon Utilities

By The Canadian Press on October 23, 2023.

An Aecon construction site near the Gardiner Expressway is shown in Toronto on Friday, July 10, 2020. THE CANADIAN PRESS/Joe O'Connal

TORONTO – Aecon Group Inc. has signed a deal that will see Oaktree Capital Management LP invest $150 million in the company’s utility infrastructure services business.

Under the agreement, Oaktree will acquire a 27.5 per cent stake in Aecon Utilities through a convertible preferred equity investment.

Aecon chief executive Jean-Louis Servranckx says the investment will accelerate growth in the business and strengthen Aecon’s balance sheet.

Aecon will own a 72.5 per cent stake in Aecon Utilities once the deal closes.

The conversion value of the investment implies a $750-million enterprise value for Aecon Utilities.

Aecon shares, which were halted pending the announcement of the deal, were up 78 cents at $11.19 on the Toronto Stock Exchange on Monday morning.

This report by The Canadian Press was first published Oct. 23, 2023.

Companies in this story: (TSX:ARE)

Share this story:

9
-8

Comments are closed.