Aecon Group has engaged two financial service providers to help explore the sale of the company.
In a news release, the company confirmed it has asked BMO Capital Markets and TD Securities to investigate the potential sale. However, Aecon notes any transaction would be intended to create shareholder value and enhance the company’s capabilities and growth potential.
“There can be no assurance that this process will result in any agreement or that a transaction will be consummated,” the company said in a statement. “Aecon does not intend to comment on this matter further unless required by regulations governing the company’s public disclosure practices.”
Aecon confirmed it is exploring a potential sale of the company after it was requested by the Investment Industry Regulatory Organization of Canada (IIROC) to comment on the recent increase in the trading volume and price of the its common shares on the Toronto Stock Exchange (TSX). The company’s stock was frozen on the TSX by regulators after a noticeable increase in volume and price.
When the stock returned to the TSX, it climbed more than 20 per cent to close at more than $17 per share.
Aecon provides construction services to private and public-sector clients in the infrastructure, energy and mining sectors and provides project management, financing and development services through its concessions segment. The company is also consistently recognized as one of the Best Employers in Canada.
Aecon’s history can be traced back to 1877, when Scottish immigrant Adam Clark started a plumbing and gas fitting business in Hamilton, Ont. Since then, Aecon has grown into one of the largest construction and infrastructure development companies in Canada.
Aecon and iconic Canadian structures
Since its creation, Aecon has been involved in the construction of some of Canada’s most iconic landmarks, including the CN Tower, St. Lawrence Seaway, Vancouver Sky Train and the Montreal’s Trudeau International Airport.
For the second quarter of 2017, Aecon reported revenue of $686 million compared to $839 million in the second quarter of 2016.
New contract awards of $686 million were booked in the second quarter include two large diameter pipeline awards to the company’s SA Energy Group Joint Venture totalling $289 million of which Aecon’s share is $145 million. Work is expected to begin in August 2017 and reach completion in the third quarter of 2018.
As well, an engineering, procurement and construction contract worth about $34 million from Inter Pipeline for work at its Kirby North Facility. The project is expected to commence in the third quarter of 2017 with targeted completion in the fourth quarter of 2019.
Mine site work in Manitoba includes a $21 million contract. The project began in July 2017 and is expected to be complete early next year.