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)
