ASGC to acquire 15% stake in UK-based construction firm Costain

Published: 10 May 2020 - 4:30 a.m.
Dubai-headquartered construction heavyweight ASGC, which is currently working on the Dubai Mall Boulevard Expansion Project, will acquire a 15% stake UK-based construction and engineering firm Costain.

ASGC entered into a binding commitment with Costain for the acquisition that comes as part of the British firm’s plans to raise $124.1m in cash.

The Dubai firm will purchase 41,666,666 new ordinary shares at a $31m offer price, following which it will hold 15.2% of Costain’s enlarged share capital.

Speaking about ASGC’s plan to buy the 15% stake in Costina, group chief executive officer, Bishoy Azmy, said: “We are always seeking to diversify our interests and see long-term, structural growth opportunities in UK infrastructure.

“We see the move as a way to benefit from an expected increase in UK infrastructure spending and believe that Costain will be well placed to take advantage of these.”

Meanwhile, in a bourse missive filed by Costain in the London Stock Market (LSE), the CEO Alex Vaughan, said: "We are pleased to have secured significant support from investors for this fundraising.

“With a stronger balance sheet and the positive long term outlook for UK infrastructure, Costain will be better placed to benefit from the significant market opportunity in front of us."

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