Aecon To “Explore Potential Sale Of Company”
Aecon Group Inc, which is involved in the redevelopment of Bermuda’s airport, have confirmed that they have engaged financial service providers to “explore a potential sale of the company.”
A statement by the company says, “Aecon Group Inc. has been requested by the Investment Industry Regulatory Organization of Canada [IIROC] to comment on the recent increase in the trading volume and price of the Company’s common shares on the Toronto Stock Exchange.
“The Company confirms that it has engaged BMO Capital Markets and TD Securities to explore a potential sale of the Company. 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. Aecon does not intend to comment on this matter further unless required by regulations governing the Company’s public disclosure practices.”
The company website says, “Aecon Concessions brings the specialized capabilities and diverse strengths of the Aecon Group to the development of domestic and international Public-Private Partnership [P3] projects as well as other infrastructure development projects requiring private finance solutions.
“Within these projects, Aecon plays a pivotal role as financier, investor, constructor and/or operator.”
When the deal in relation to the Bermuda airport closed, Aecon said, “In addition to its construction mandate, Aecon’s Concessions segment led the development and financing of the project.
On financial close, Bermuda Skyport Corporation Limited [Skyport], a special purpose company formed and initially wholly-owned by Aecon Concessions, will take over the airport’s operations, maintenance and commercial functions, and manage and coordinate the overall delivery of the redevelopment project over a 30-year concession term.
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I would welcome a statement locally clarifying that this will not, presumably, affect the airport.
There is a contract in place, if some other entity owns AECON, then they would be subject to the contract. They would have in effect brought the contract and have to complete it. There is a contract, and it has to be completed, irregardless of who the owners of AECON are
I’ll wait to reserve judgement until the details emerge and if this could impact our airport deal. I’m sure that any breach on their part would afford us financial compensation. However, this does make me have some concern about the viability of the company that the OBA got us in bed with.
I doubt that there will be a change in the contract. The contract and the 30-year deal will probably be one of their biggest selling point. We got used to make a lot of people really, really rich.
But you have no concerns about the overseas bankers who get interest on the money that government borrows.
They get it anyway! The only difference is the rate at which you borrow.
Or the new hospital (wing) with it’s over the moon cost and loads of redacted information in the deal (contract)
Or politicians who had little wealth when they were elected but left with millions.
But quiet about the hospital deal which was the same thing….can’t have ya cake and eat it too
So, you think our piddly little airport contract is the only thing AECON has on the go.
Many of us had this concern from the very beginning. Considering, especially, how closely guarded this “deal” was…
‘Closely guarded’… you realize this was the most publicized and open contract negotiation in this countries history. The fact that you think it was closely guarded speaks to how little you actually understand about business deals. Very rarely are they ever so open as this one was.
” However, this does make me have some concern about the viability of the company that the OBA got us in bed with”
You’re concerned about he viability of Aecon? The airport isn’t their only project…it’s probably their smallest….learn a little before revealing your ignorance.
And here it begins
the Chinese are servicing our debt anyway whats new
Seems like someone is trying to release the windfall from their recent contentious agreement, so that they can get their payoff and be on their way.
what nonsense. Nobody in the OBA has made money from any deal esp this one. All that will happen, IF a sale does happen, is the sale of the HOLDING company that owns Aecon. it might be too much for some people to grasp but companies of this magnitude are bought/sold/restructured ALL the time. furthermore, our contract with Aecon is worth a lot of money so they no one is about to mess with it.
It’s funny how you read that comment to be about the OBA……I read the exact same thing and thought the comment was referring to AECON…….I don’t know if either of us is right but I do find it interesting how two people are reading the same thing and come to two different conclusions neither of us wth the all of the information.
NOT AN INDICTMENT JUST AN OBSERVATION…..
This was a setup to make some people very rich.
Potential 1 billion in revenue, so give me 400 mil and you take the rest.
Check the shareholders
The Canadian regulator is concerned about the cross over of the number of Aecon business interests and it seems a partial monopolistic position. This has nothing to do with the Airport. Aecon is huge and their interests in other projects far outweigh the BDA airport! Every document is available to the public to see save for financial information underlyIng the deal. So stop whining and being played. PLP wants to unravel the deal and I bet there has not been a single real approach that do so.
Companies change owners… Happens all the time. Doesn’t make all their contracts null and void. I’m sure that lawyers on both sides of the contract negotiations included terms to deal with this type of possibility.
As far as the comment about this raising concerns about the company the OBA got into bed with. I’ll remind everyone that this project is backed by the full faith and credit of the government of Canada.
Look at these comments. The absolute rubbish that some people write.
Toronto, Ontario – July 27, 2017: Aecon Group Inc. (TSX: ARE) today reported results for the second quarter of 2017.
“Aecon’s second quarter results demonstrate the strength of Aecon’s diverse business model and related growth in Adjusted EBITDA margin,” said John M. Beck, President and Chief Executive Officer, Aecon Group Inc. “We continue to be very active bidding on the robust pipeline of opportunities in front of us that will drive revenue growth in 2018 and beyond.”
HIGHLIGHTS
Revenue for the three months ended June 30, 2017 was $686 million compared to $839 million in the second quarter of 2016.
Adjusted EBITDA of $33 million (margin of 4.8 per cent) for the second quarter of 2017 compared to Adjusted EBITDA of $29 million (margin of 3.5 per cent) in the second quarter of 2016.
Operating profit of $5.3 million and diluted earnings per share of $0.01 compared to $12.3 million and $0.12 respectively in the second quarter of 2016, a reduction due primarily to amortization of the intangible concession asset related to the Bermuda International Airport Project in the second quarter of 2017 of $8.3 million.
Backlog as at June 30, 2017 of $4.4 billion compares to backlog of $4.4 billion as at the end of the first quarter.
New contract awards of $686 million were booked in the second quarter of 2017 including:
Two large diameter pipeline awards to our 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.
An engineering, procurement and construction contract worth approximately $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.
A $21 million contract in the Mining segment for mine site work in Manitoba. The project began in July 2017 and is expected to be complete in the first quarter of 2018.
The cloak of secrecy is slowly being unveiled so that we can all see what they’ve been hiding all along. Uncle Bob and cousin Mike probably knew about this all along I’m sure.
What bollocks. Utterly clueless.
what a mess we are in !!! I never thought the OBA would only serve one term !!!!
I’d like to know ,” who in the UBP/OBA , knew what , and when ?”
Somebody knew something !
Don’t tell me that a decision of this magnitude wasn’t discussed with someone in that failed experiment called the OBA prior to the a con deal !
Know what?
When you buy a company… You purchase its’debt.
Convdrsely if you sell a company… you sell its’obligation…
Somebody is making BIG bucks off this deal and it ain’t Bermujians!! We sold out!
who knew selling debt would be soooo popular???????
Don’t worry Aceon have gravel pits and road paving contracts in Canada with profits in the hundreds of millions per year.
Our airport is a small asterisk on a balance sheet and would not be even mentioned in meaniful terms to a potential purchaser of Aceon Holdings.