Toronto, Ontario – March 16, 2006: Aecon Group Inc. (TSX: ARE) today announced that Hochtief Canada Inc., a wholly owned subsidiary of Hochtief AG of Essen, Germany, has exercised its option to convert approximately $7.7 million of convertible debt to Aecon common shares at a conversion price of $3.60 per share.
Hochtief's conversion of debt into common shares is being made in accordance with the terms of agreements it entered into with Aecon (then Armbro Enterprises Inc.) in connection with Hochtief's financing of Armbro's 1999 acquisition of BFC Construction Corporation. The right to convert the debt was set to expire in June 2006.
As a result of this conversion, Hochtief received 2,147,566 common shares, increasing Hochtief AG's indirect equity interest in Aecon to 16,576,896 common shares. This will equate to approximately 43.5% of Aecon's issued and outstanding common shares after giving effect to the recently announced common share financing (42.8% if the dealer over-allotment option is exercised). Prior to the conversion and the common share financing, Hochtief directly and indirectly owned approximately 46.0% of Aecon's outstanding common shares.
Aecon Group Inc. is Canada's largest publicly traded construction and infrastructure development company. Aecon and its subsidiaries provide services to private and public sector clients throughout Canada and internationally.