Aecon Group Inc. (TSX: ARE) said it has engaged BMO Capital Markets and TD Securities to look into a possible sale of the Company
SmallCapPower | August 28, 2017: Aecon Group Inc. (TSX: ARE) shares powered more than 20% higher to close at $17.24 on Friday after the Canadian construction firm confirmed that it has engaged BMO Capital Markets and TD Securities to look into a possible sale of the Company. Aecon Group made the disclosure after regulators halted its stock because of a spike in its volume and price.
There can be no assurance that this process will result in any agreement or that a transaction will be consummated. Aecon Group does not intend to comment on this matter further unless required by regulations governing the Company’s public disclosure practices. The transaction would be intended to create shareholder value and enhance the Company’s capabilities and growth potential.
Aecon Group is an attractive takeover target given its strong balance sheet, solid exposure to Canadian infrastructure opportunities of up to $40 billion and also the Company has been without a CEO since November 2016, according to Desjardins Capital Markets analyst Benoit Poirier in a note.
Aecon Group currently trades at price to TTM sales of 0.33x, price to book ratio of 1.37x and trailing P/E of 22.71x.
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