Leading Canadian construction company Aecon has extended the deadline of its sale to CCCC International Holding (CCCI) to 13 July as a national security review continues to delay the $1.5bn deal.
“The parties chose to extend the Outside Date because of the ongoing review of the proposed transaction under the Investment Canada Act,” Aecon said.
Despite the extended deadline, Aecon remains confident that, should the deal be approved, the transaction will complete before the end of Q2 2018.
The deal will see CCCI paying $20.37 per share, equating to a 42% premium compared to the Aecon’s unaffected share price as of 24 August last year before CCCI first expressed interest in a deal.
“Aecon shareholders have voted overwhelmingly in favour of it, the Ontario Superior Court of Justice has approved the Plan of Arrangement, and CCCI has received approval from the National Development and Reform Commission,” Aecon continued.
“Completion of the proposed transaction remains subject only to approval under the Investment Canada Act and other customary closing conditions for a transaction of this nature.”
Should the deal be approved, CCCI has stated that it will remain committed to ensuring that Canada continues to see benefits from Aecon as a leading national firm, which will include retaining its headquarters in Canada and a continuation of the company’s Canadian management and employment.
“Both Aecon and CCCI remain committed to working with the Investment Review Division to obtain approval of the transaction,” Aecon concluded.