Shares of Aecon Group saw a boost on Monday following the announcement that its subsidiary, Aecon Utilities Group, has received a significant investment of 150 million Canadian dollars ($109.3 million). This investment secures a 27.5% stake in the company.
Share Price Rise
At 11:18 a.m. ET, the company's shares surged by 6.3%, reaching C$11.07.
Strategic Investment from Oaktree Capital Management
Oaktree Capital Management's Power Opportunities strategy will be managing the funds used for this strategic investment in Aecon Utilities. This investment not only provides financial flexibility to Aecon but also aims to expedite its acquisition strategy.
Driving Growth Aspirations
Aecon mentioned that with this investment, Aecon Utilities will have access to a standalone committed revolving credit facility of C$400 million. These funds will enable Aecon Utilities to pursue its growth goals in both Canada and the U.S.
Strengthening Balance Sheet
Jean-Louis Servranckx, Chief Executive of Aecon Group, expressed excitement about the strategic investment, highlighting how it will contribute to the accelerated growth of Aecon Utilities and improve the company's overall financial position.
