Back in May I wrote a review on Aecon Group, and recommended it as a buy. Following my own advice, since then I have been purchasing shares on dips in both my TFSA and corporate accounts. It seems that I wasn’t the only one that thought Aecon was under valued, and a worthy investment, because CCCC International Holding Limited (CCCI) has offered to purchase Aecon Group at a price of C$20.37/share!
From the Aecon Group press release:
- All-cash consideration of $20.37 per share; 42 per cent premium to unaffected share price
- Aecon gains access to new platforms and partnerships for continued growth in Canada and abroad; CCCI advances its global growth strategy
- New growth and employment opportunities expected as Aecon gains significant capabilities and financial strength by joining the world’s largest network of engineering and construction companies
- Aecon will retain its name, continue to be Canada-headquartered and led by its Canadian management team
- Aecon and CCCI share a strong commitment to maintaining customer service excellence and a safety-first culture
- Aecon board of directors unanimously recommends transaction to shareholders
This is great news for me. My adjusted cost basis is $16.67, and with an offering price of $20.37 that nets me a healthy 22.20% gain!
I had originally purchased Aecon for its strong dividend growth—21% compounded annually since 2007—and great underlying fundamentals, and I will be sad to see a solid dividend payer go away. However, given the capital gains attached to the sale, this is a great win. What makes things even better is that half of my holdings are in my TFSA, which means that the 22.20% gain is tax-free.
All in all, a great way to end October; this was certainly a treat!
It’s been about five months since my last post, and likewise, about five months since I last looked at any of my investments. Thankfully, my investment strategy is focused on long-term holdings, and as such does not require me to constantly monitor the markets on a day by day basis.
That said, I have made on investment recently in the Class B shares of Dorel Industries, and the analysis will be posted shortly. For the next month this blog may also see some non-investing articles, as I may post some material for one of my classes at the Rotman School of Management. However, even though they are not directly related they will still be relevant to analyzing companies and how they operate vis-à-vis providing value to investors.
Until then, happy investing!
I have been an avid follower of Dividend Growth Investor for the past few years as I have become more interested in investing, but as DGI is a US based investor many of the recommendations and analyses are based on US stocks. However, given that imitation is the sincerest form of flattery, and that securities analysis is something that I also do when I am interested in a company, I figured I’d start up my own blog.
Lo and behold, some of the popular names such as Canadian Dividend Investor and Canadian Dividend Investing were taken, albeit both of those sites have zero content. “Canadian Dividend Growth Investor” would work 100%, but it is a little lengthy. So, what’s the next best thing? A Dividend Gangster, of course. Haha.
Stay tuned for more!