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Aecon announces issuance of common shares

Mar 27, 2008

Toronto, Ontario – March 27, 2008: Aecon Group Inc. (“Aecon”) (TSX:ARE) announced today that it has entered into an agreement to issue 4.0 million common shares on a bought deal basis to a syndicate of underwriters led by GMP Securities L.P. and including Paradigm Capital Inc., Raymond James Ltd., TD Securities Inc., Canaccord Capital Corporation, and CIBC World Markets Inc.  The common shares will be publicly offered in Canada under a short-form prospectus at a price of $18.25 per share, representing gross proceeds of $73.0 million. 

The underwriters were also granted an Over-Allotment Option to purchase an additional 15% of the Offering at any time until 30 days after Closing at a price of $18.25 per share for total gross proceeds including the Over-Allotment Option of up to $83.95 million.

Closing is expected to occur on or about April 17, 2008 subject to TSX and other regulatory approvals.  Aecon currently has approximately 46,819,290 common shares issued and outstanding.

The net proceeds of the Offering will be used to repay debt associated with recent acquisitions, for general corporate purposes including working capital, and for potential future acquisitions.

“This equity issue will further strengthen our balance sheet, and position Aecon well to capitalize on future growth opportunities in this very robust market,” said Scott Balfour, Aecon’s President and CFO.

The shares will be issued under a short form prospectus in the provinces of British Columbia, Alberta, Manitoba, Ontario, Quebec and Nova Scotia.  The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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. Aecon is pleased to be recognized as one of the 50 Best Employers in Canada as published by Report on Business Magazine.  The Company's shares are listed for trading on the Toronto Stock Exchange under the symbol ARE.