Oaktree Capital Management investing $150 million Aecon Utilities

TORONTO – Aecon Group Inc. has signed a deal that will see Oaktree Capital Management LP invest $150 million in the company’s utility infrastructure services business.

Under the agreement, Oaktree will acquire a 27.5 per cent stake in Aecon Utilities through a convertible preferred equity investment.

Aecon chief executive Jean-Louis Servranckx says the investment will accelerate growth in the business and strengthen Aecon’s balance sheet.

Aecon will own a 72.5 per cent stake in Aecon Utilities once the deal closes.

The conversion value of the investment implies a $750-million enterprise value for Aecon Utilities.

Aecon shares, which were halted pending the announcement of the deal, were up 78 cents at $11.19 on the Toronto Stock Exchange on Monday morning.

This report by The Canadian Press was first published Oct. 23, 2023.

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