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CVTech awarded industrial contracts worth $77.4 million

Contracts come just days after shareholder dispute pushed company's stock price to a two-year high, causing a trade halt.


June 3, 2013
by PLANT STAFF with files from The Canadian Press

DRUMMONDVILLE, Que. – CVTech Group Inc. has been awarded industrial maintenance and construction contracts totaling $77.4 million just days after shares dipped slightly following a day-long halt amid a shareholder dispute that pushed the stock price to a two-year high last week.

The contract’s include:

Ontario-based subsidiary Riggs Distler Inc. has obtained five contracts totalling $24.5 million.

  • A $9.6 million contract for the construction of a large-scale underground substation in Toronto. Work will be completed by December 2014. Recently-acquired subsidiary BG High Voltage Systems Limited will also be involved on this project.
  • A $3.4 million contract for electrical and civil work on Toronto’s electricity distribution network. Work will be spread out until December 2013.
  • A two-year, $4 million contract to carry out work on a municipal utility company’s aerial electricity distribution network from June 2013 to May 2015.
  • A $3.6 million contract to install an underground collector system and substation at a new wind farm near Shelburne, Ont.
  • A $3.9 million contract to perform electrical and civil work for the relocation of a Toronto Transit Commission track in downtown Toronto.

US subsidiary Riggs Distler & Co. Inc. has been awarded several contracts valued at $47.1 million.

  • An important contract valued at US$14.0 million for the installation of piping and equipment at a new power generating facility in New Jersey. Work is expected to begin in June 2013 and extend over a period of six months.
  • Another contract worth $3.4 million for a turn-around project to complete mechanical maintenance work at a major refinery in New Jersey. Work is expected to be carried out between July and November 2013.
  • A long-term contract totalling up to $16.0 million awarded by a major Mid-Atlantic utility company to provide construction and maintenance services on its overhead electricity distribution network in Washington, DC and Southern Maryland. The contract covers the period from June 2013 to July 2015.
  • Two contracts from a major solar energy system integrator for the installation of two ground mounted solar systems totalling 25.9 mega watts in New Jersey. The contracts have an aggregate value of US$12.0 million and work is expected to be completed by the end of 2013.

Thirau ltée has also been awarded a contract valued at $5.8 million by Hydro-Québec for the construction of 315-kV and 120-kV electricity transmission lines to connect the new Lachenaie, Pierre-Le Gardeur and Saint-Bruno-de-Montarville substations to the network, which is expected to be completed by September 2013.

The stock stock soared about 20% on unusually high volume in the first minutes of trading Friday before the halt.

The ususual market activity followed a public letter from Gestion G. Aubert, owned by Guy Aubert, that said a leading NYSE-listed electrical contractor had offered $1.95 per share but was rebuffed by CVTech.

The company, which provides various services to Hydro-Quebec and other utilities, responded late Friday that a letter contained “erroneous and incomplete information.”

Drummondville, Que.-based CVTech is a provider of construction and maintenance services to the public utility and heavy industrial markets mainly in Quebec, Ontario and the eastern US.