Aecon Group Inc. (TSE:ARE) declared the sale of its 45.5% interest in the Quito International Airport concession on Tuesday before market opened. The sale is anticipated to generate net earnings of nearly $ 195 (C$243 million). The transaction is anticipated to close in the second half of 2015 and remains subject to third party approvals (anti-trust & lenders).
Aecon Group Inc. (TSX:ARE.TO – News) announced today that it has signed agreements with Grupo Odinsa S.A. and CCR S.A. to sell its 45.5 per cent interest in the Quito International Airport concessionaire, Corporaciσn Quiport S.A.(Quiport), for US$232.6 million.
The monetization of Aecon’s investment is expected to generate approximate net cash proceeds (after transaction costs and estimated cash taxes) of US$195 million, and a pre-tax accounting gain of approximately US$14 million. The transaction is expected to close in the second half of 2015 and remains subject to third party approvals including anti-trust and lender approvals.
“The monetization of this asset is a testament to the value proposition of the Quito International Airport project, and to the value of our select participation in such public- private partnership projects both domestically and internationally,” says Teri McKibbon, President and Chief Executive Officer, Aecon Group Inc. “We greatly appreciate the support of all of our partners and are proud to have had a leadership role in developing the most advanced airport in Latin America.”
Together with its partners, Aecon developed and financed the airport and holds a 45.5 per cent stake in Quiport, the airport concessionaire. Aecon built the airport as part of a 50/50 joint venture engineer/procure/construct contract with Andrade Gutierrez Constructores S.A., a construction company based in Brazil.
“This project has an incredible history both as a landmark public-private partnership in Ecuador, and a remarkable greenfield airport built on a mountain plateau. It has been a pleasure working together with the people of Ecuador and the Canadian government to develop this successful project,” said John M. Beck, Executive Chairman, Aecon Group Inc.
UBS Investment Bank served as exclusive financial advisor to Aecon on the transaction.