China Communications Construction Co. (1800.HK) plans to buy a construction service provider in Canada for 1.45 billion Canadian dollars (US$1.13 billion), as it seeks to boost its presence overseas.
The Chinese infrasturcture construction company said late Thursday that it had agreed to buy Aecon Group Inc. (ARE.T) at an offer price of C$20.37 per share, which represents a 42% premium over the stock's closing price on August 24 before Aecon first unveiled the potential stake sale. Aecon Group will be delisted from the Toronto Stock Exchange following completion of the deal, which remains subject to regulatory approvals from China and Canada.
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The proposed acquisition offers the Hong Kong-listed company a strong presence in the Canadian construction market, which is expected to see favourable growth driven by the local government's infrastructure investment commitment, it said. That also follows China Communications' earlier acquisitions of John Holland Group Pty in Australia and Friede Goldman United Ltd. in the U.S.
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(END) Dow Jones Newswires
October 26, 2017 20:59 ET (00:59 GMT)