20th Oct 2021 09:36
(Alliance News) - BBGI Global Infrastructure SA on Wednesday said it has agreed to buy a 25% stake in a Canadian healthcare network.
The Luxembourg-based investor said it will pay around CAD88 million to acquire a 25% stake in the Center Hospitalier de l'Universite de Montreal, known as CHUM.
If approved, the purchase will be funded by the company's GBP230 million corporate revolving credit facility and existing cash resources, BBGI Global said.
CHUM is a hospital located in central Montreal in the province of Quebec, Canada.
The investment is part of a public-private partnership project to develop a hospital facility including new buildings, parking and retail areas, along with supporting infrastructure in the Quebec province.
"The new state of the art facility caters to over 1.7 million people in the region and it is one of the largest healthcare centres in North America," BBGI Global said.
The projects first phase wrapped up in 2017, followed by the second phase in 2021, the company said. Overall, the concession runs until 2050.
The stake was purchased from entities owned by Spanish construction and civil engineering company Obrascon Huarte Lain SA.
After the acquisition, BBGI Global said its portfolio will include 55 infrastructure investments in Australia, Canada, Europe, the UK and the US.
"We are delighted to acquire this high-quality availability-based social infrastructure investment with strong [environmental, social and corporate governance] credentials...Our strategy is to remain disciplined and selective in our approach to acquisition opportunities by only investing in availability-based assets that also align with our ESG principles, and not in higher risk infrastructure asset classes," said Joint Chief Executives Duncan Ball and Frank Schramm.
Shares in BBGI Global Infrastructure were trading up 0.3% at 176.39 pence each in London on Wednesday morning.
By Scarlett Butler; [email protected]
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