ACS Group, through its subsidiary ACS Infrastructure Canada, Inc. (Iridium), has announced it has sold a 37.5% stake in the concession company which manages part of a highway in Vancouver to two Canadian funds.

This percentage represents a 75% of its 50% stake.

The buyer are Connor, Clark & Lunn Infrastructure (CC & L Infrastructure) and Régime de rentes du Mouvement
Desjardins (Desjardins).

ACS, which runs other toll roads in Canada,would retain a minority stake in the project. Its holding now stands at 12.5 percent.

The group has signed a service contract with the buyer to operate and maintain the highway for a period of 18 years. ACS will have a 75% stake in this O&M company.

The project, the South Fraser motorway, is a key element in the Province of British Columbia 'Gateway Program', which improves highways and bridges throughout the Vancouver metropolitan area.

The project includes a new 34 kilometer, four-lane highway on the south side of the Fraser River. With connections to Highway 99, Highway 91, the Trans-Canada Highway, the Pattullo Bridge and the Golden Ears Bridge. The road was planned to remove heavy truck traffic from local roads, reduce travel times through the region, and improve access to major trade gateways and industrial areas.

As we reported in December 2013, federal and local political leaders officially opened the project, which was awarded to Fraser Transportation Group on 10 May 2010. Members of the Fraser Transportation Group included ACS Infrastructure Canada Inc. (75 %) and Ledcor Development Ltd (25%).