Chinese Firm Buys CN Tower Builder Aecon for $930 Million By
October 26, 2017, 8:12 AM EDT Updated on October 26, 2017, 4:22 PM EDT
Shares rise nearly 19 percent in early trading Thursday
Transaction expected to close by end of first quarter 2018
A general view of the Toronto skyline in Canada, including the CN Tower.
Photographer: Danny Lawson - PA Images/PA Images via Getty Images Aecon Group Inc. agreed to be acquired by a unit of China Communications Construction Co. for C$1.19 billion ($930 million) in cash, giving the Canadian company more heft to bid on global infrastructure projects.
Aecon, which helped build Toronto’s landmark CN Tower, said in a statement CCCC International Holding Ltd. would pay C$20.37 a share, or 23 percent higher than Aecon’s closing price Wednesday. The stock closed up 19 percent at C$19.73 in Toronto.
“This is a very positive outcome for Aecon and our key stakeholders," Aecon Chairman Brian Tobin said in the statement. The company will continue to be based in Canada.