6th Feb 2025 08:37
(Alliance News) - BBGI Global Infrastructure SA on Thursday said it agreed to a takeover from a vehicle indirectly controlled by Canada's British Columbia Investment Management Corp.
The Luxembourg-based infrastructure investor will be acquired at 147.5 pence per share in cash, a 21% premium to its 121.8p closing price on Wednesday. It values BBGI Global's the entire issued and to be issued share capital at GBP1.06 billion.
BBGI had a market capitalisation of GBP870.7 million before the open on Thursday. Its shares were up 19% to 144.90p each on Thursday morning, giving it a market cap of GBP1.04 billion.
The company expects its takeover to complete in the third quarter of 2025.
British Columbia Investment Management is an institutional investor in Victoria, British Columbia with about CAD250.4 billion, around USD174.41 billion, in assets under management, as of March 31, 2024.
As of March last year, it had some GBP139.61 billion in gross assets under management. It manages a portfolio of investments on behalf of its British Columbia public pension fund and institutional clients.
BBGI Global Chief Executive Officer Duncan Ball said: "Although both the BBGI supervisory board and the BBGI management board are confident that BBGI can continue to deliver sustainable cash flows 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."
Grant Hodgkins, senior director, Infrastructure & Renewable Resources of BCI, said: "We believe BBGI will be a compelling and strategic addition to BCI's Infrastructure & Renewable Resources portfolio, with a diversified mix of international holdings across the transport, clean energy, healthcare, education and social infrastructure sectors. We see many opportunities to leverage our expertise, global relationships, and access to long-term capital, alongside BBGI's experienced management team and proven asset management strategies, to drive further growth and value creation across the BBGI portfolio."
By Tom Budszus, Alliance News slot editor
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