Toronto, Ontario – March 15, 2023: Aecon Group Inc. (TSX: ARE) (“Aecon” or the “Company”) announced today that it has entered into an agreement with Connor, Clark & Lunn Infrastructure (“CC&L Infrastructure”) to sell a 49.9 per cent minority interest in the L.F. Wade International Airport (Bermuda International Airport) concessionaire, Bermuda Skyport Corporation Limited (“Skyport”), for US$128.5 million.
Aecon Concessions will retain the management contract for the airport and remain the controlling shareholder of Skyport, owning a 50.1 per cent interest. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2023.
“This transaction highlights the value of the Bermuda International Airport concession and underlines the contribution of the Concessions’ portfolio of projects to Aecon,” said Jean-Louis Servranckx, President and Chief Executive Officer, Aecon Group Inc. “Aecon continues to target a prudent balance sheet while preserving capital for other long-term growth and concession opportunities.”
CC&L Infrastructure is an affiliate of Connor, Clark & Lunn Financial Group, a Canadian asset management firm with over C$100 billion of financial assets under management. CC&L Infrastructure brings significant experience partnering with international and local developers, operators, and management teams with over 90 infrastructure projects in North America and other select creditworthy jurisdictions.
“We are very pleased to welcome CC&L Infrastructure as a financial partner and look forward to working together to continue to deliver value to Bermuda through this award-winning airport,” said Steve Nackan, Executive Vice President and President, Aecon Concessions. “This partnership demonstrates investor confidence in the future of Bermuda’s economy, including post-pandemic recovery and tourism growth.”
Solomon Partners is serving as exclusive financial advisor to Aecon, and McCarthy Tétrault LLP is serving as legal counsel.
Skyport is a special-purpose company owned by Aecon Concessions, responsible for the airport’s operations, maintenance and commercial functions, as well as coordinating the overall delivery of the Bermuda International Airport Redevelopment Project over a 30-year concession term that commenced in 2017. Under a Government-to-Government/Public-Private Partnership (P3) model, Aecon worked with the Canadian Commercial Corporation and the Government of Bermuda to develop, finance, design, build, operate and now maintain the new passenger terminal building, which opened in December of 2020.
About Aecon
Aecon Group Inc. (TSX: ARE) is a national Canadian construction and infrastructure development company with global experience and is proud to be recognized as one of the Best 50 Corporate Citizens in Canada. Aecon delivers integrated solutions to private and public-sector clients through its Construction segment in the Civil, Urban Transportation, Nuclear, Utility and Industrial sectors, and provides project development, financing, investment and management services through its Concessions segment. Join our online community on Twitter, LinkedIn, Facebook, Instagram and TikTok @AeconGroupInc.
Statement on Forward-Looking Information
The information in this press release includes certain forward-looking statements which may constitute forward-looking information under applicable securities laws. These forward-looking statements are based on currently available competitive, financial and economic data and operating plans but are subject to risks and uncertainties. Forward-looking statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, ongoing objectives, strategies and outlook for Aecon, including statements regarding: Aecon’s sale of a 49.9% interest in Skyport to CC&L Infrastructure, the expected results therefrom and the anticipated closing thereof; Aecon’s target of a prudent balance sheet while preserving capital for other long-term growth and concession opportunities; Aecon’s expectation that it and CC&L Infrastructure will work together to continue to deliver value to Bermuda, and what the partnership between Aecon and CC&L Infrastructure represents. Forward-looking statements may in some cases be identified by words such as “may”, "will," “expects,” “target,” “future,” "plans," "believes," "anticipates," "estimates," "projects," "intends," "should" or the negative of these terms, or similar expressions. In addition to events beyond Aecon's control, there are factors which could cause actual or future results, performance or achievements to differ materially from those expressed or inferred herein including, but not limited to: the risk that the transaction will not close; the risk that Aecon will not achieve its targeted balance sheet strength while preserving capital for other long-term growth and concessions opportunity, the risk that Aecon and CC&L Infrastructure will not be able to work together to continue to deliver value to Bermuda through the airport and various other risk factors described in Aecon’s filings with the securities regulatory authorities which are available under Aecon’s profile on SEDAR (www.sedar.com) including the risk factors described in Section 13 - "Risk Factors" in Aecon's December 31, 2022 Management's Discussion and Analysis filed on SEDAR (www.sedar.com) on February 28, 2023.
These forward-looking statements are based on a variety of factors and assumptions including, but not limited to that: none of the risks identified above materialize, there are no unforeseen changes to economic and market conditions, no negative changes regarding post-pandemic recovery and tourism growth at the Bermuda airport and no significant events occur outside the ordinary course of business. These assumptions are based on information currently available to Aecon, including information obtained from third-party sources. While the Company believes that such third-party sources are reliable sources of information, the Company has not independently verified the information. The Company has not ascertained the validity or accuracy of the underlying economic assumptions contained in such information from third-party sources and hereby disclaims any responsibility or liability whatsoever in respect of any information obtained from third-party sources.
Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Aecon undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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