BBGI Global Infrastructure has received a £1bn cash offer from British Columbia Investment Management Corporation (BCI) to acquire the infrastructure investment trust.
The offer, which has been recommended by the BBGI board, will see shareholders receive 147.5p per share. It comes at a 21.1% premium to BBGI’s closing price last night (5 February) of 121.8p.
BCI is among Canada’s largest institutional investors. The bid was lodged by Boswell Holdings, which is a newly formed special limited partnership indirectly controlled by BCI.
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In a stock exchange announcement, BCI said it believes BBGI’s growth and development will be best served as a private business under the bidding company’s ownership.
Duncan Ball, chief executive officer of BBGI, said: “Since its launch in 2011, BBGI has grown to become one of the UK’s largest listed infrastructure funds, with a globally-diversified portfolio of 56 low-risk, core infrastructure assets that deliver sustainable and long-term index-linked cashflows. Over this period, we have delivered a total net asset value return of 176.3%.
“Although both the BBGI Supervisory Board and the BBGI Management Board are confident that BBGI can continue to deliver sustainable cashflows to BBGI Shareholders, the offer from BCI represents a premium to undisturbed share price and to net asset value, and provides BBGI shareholders with the opportunity to realise the value of their holdings in cash, at an attractive value in excess of the reasonable medium term prospects for BBGI on a standalone basis.
“As a result, both the BBGI Supervisory Board and BBGI Management Board have concluded that the offer is in the best interests of BBGI Shareholders and BBGI as a whole.”