Aecon Group has signed agreements with Grupo Odinsa and CCR to sell its 45.5% interest in the Quito International Airport concessionaire, CorporaciÏƒn 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.
Teri McKibbon, President and Chief Executive Officer, Aecon Group, commented:
"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. 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% 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, a construction company based in Brazil.
John M. Beck, Executive Chairman, Aecon Group stated:
"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."
UBS Investment Bank served as exclusive financial advisor to Aecon on the transaction.