ASGC has said it will acquire a 15% stake in UK-based construction firm Costain. The construction group says it has entered into a binding commitment to purchase 41,666,666 new ordinary shares at a $31m offer price.

Early in March 2020, Costain said it would embark on a $124m equity raising drive.

“We 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,” said Bishoy Azmy, ASGC group CEO.

ASGC was founded in 1989 and has built several landmark construction projects such as the Coca-Cola arena in Dubai, Sustainability Pavilion, HH Sheikh Mohamed Bin Rashid Public Library, the Dubai International Airport expansion and many others.

Alex Vaughan, CEO of Costain added, “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.”