The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Aecon announces commencement of a Normal Course Issuer Bid

Monday, March 14, 2011

Aecon announces commencement of a Normal Course Issuer Bid06:30 EDT Monday, March 14, 2011TORONTO, March 14 /CNW/ - Aecon Group Inc. (TSX: ARE) announced today that it is commencing a normal course issuer bid that will enable it to purchase up to 5,527,277 common shares of Aecon over a 12 month period, representing up to 10% of Aecon's "public float" as of March 14, 2011, determined in accordance with the rules of the Toronto Stock Exchange (the "TSX"). As of March 14, 2011, the public float and the issued and outstanding shares were 55,272,768and 57,047,049 shares, respectively.Aecon believes that its common shares are undervalued in relation to its current and future business prospects and that the acquisition of shares pursuant to the issuer bid represents an appropriate use of available funds which will enhance shareholder value and reduce the overall cost of capital.The normal course issuer bid will commence March 16, 2011 and terminate on March 15, 2012, unless earlier terminated by the Company.  Common shares purchased under the normal course issuer bid will be cancelled. The price that Aecon will pay for any such common shares will be the market price at the time of acquisition.  Management of Aecon will determine the actual number of common shares that may be purchased and the timing of any such purchases, subject to compliance with TSX rules. Daily purchases will be limited to 106,302 common shares, other than block purchase exceptions. The bid has been approved by the TSX, and will be effected through the facilities of the TSX.The common shares of Aecon trade on the TSX under the symbol "ARE".Aecon Group Inc. is Canada's largest, publicly traded construction and infrastructure development company. Aecon and its subsidiaries provide services to private and public sector clients throughout Canada and on a selected basis internationally. Aecon is pleased to be recognized as one of the Best Employers in Canada as published by Maclean's Magazine.This press release contains forward-looking information within the meaning of applicable Canadian securities laws including statements with respect to Aecon's intention to purchase up to 5,527,277 common shares pursuant to the Notice of Intention to Make a Normal Course Issuer Bid, Aecon's belief that the trading price of its common shares are undervalued and that the issuer bid will enhance shareholder value and reduce the overall cost of capital. The words "may", "will", "believes", "plan" and similar expressions are intended to identify forward-looking information. Forward-looking statements are based on estimates and assumptions made by Aecon in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that Aecon believes are appropriate in the circumstances. Many factors could cause Aecon's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.Risk factors are discussed in greater detail in the section on "Risk Factors" in the 2010 Management Discussion and Analysis filed on March 8, 2011 and available at www.sedar.com.  Important factors, in addition to those discussed in this document, could affect the future results of Aecon and could cause those results to differ materially from those expressed in any forward-looking information. Aecon has no intention and undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.For further information: Mitch Patten Senior Vice President Corporate Affairs Aecon Group Inc. 416-297-2615 aecon@aecon.com www.aecon.com