28th Mar 2025 10:46
(Alliance News) - BBGI Global Infrastructure SA on Friday announced a lower net asset value per share and a pretax profit dive, ahead of its planned takeover.
The Luxembourg-based infrastructure investor said net asset value per share fell 3.5% to 142.7 pence as at December 31 from 147.8p a year ago.
NAV total return per share was 2.1% in 2024, driven by paid dividends, and down from 3.8% in 2023. It was lower in 2024 due to higher discount rates and foreign exchange movements, BBGI noted.
Pretax profit fell 34% to GBP28.9 million in 2024 from GBP43.6 million in 2023.
Income from investments at fair value through profit or loss edged down 3.8% to GBP42.8 million from GBP44.5 million, while administrative expenses increased 12% to GBP13.5 million from GBP12.1 million.
Pertinently, BBGI reported a net loss on balance sheet hedging of GBP700,000 for 2024, compared to a gain of GBP13.4 million in 2023.
Chief Executive Officer Duncan Ball said: "Over the past year, we have navigated a challenging market environment by maintaining financial discipline and focusing on delivering sustainable cash flows from our defensive infrastructure portfolio. Our investments in essential social infrastructure assets have ensured stability across the portfolio."
The company declared a dividend of 8.40p per share for 2024, up 5.9% from 7.93p paid for 2023. For 2025, it targets a 2.0% increase to 8.57p.
Looking ahead, the company said: "The long-term outlook for infrastructure investment remains positive, underpinned by governments' ongoing need for renewal and expansion of essential infrastructure amid fiscal constraints, and specialist investors like BBGI are well placed to play a critical role.
"However, over the last few years there has been a widespread de-rating of share prices amongst the UK listed investment funds invested across all alternative asset classes. A disconnect between public and private market valuations coupled with BBGI shares consistently trading at a discount to NAV since April 2023 has constrained BBGI's access to capital markets and remains a key impediment to seizing the growth opportunities.
"Over time, as concessions expire and assuming no access to capital and no further investments, eventually the NAV of the business would be expected to decline on an annual basis given the amortising nature of BBGI's assets."
In February, BBGI had announced it agreed to a takeover valuing it at around GBP1.06 billion, by a vehicle indirectly controlled by Canada's British Columbia Investment Management Corp.
BBGI 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 entire issued and to be issued share capital at GBP1.06 billion.
BBGI Global shares were virtually flat at 140.04 pence each on Friday morning in London, giving it a market capitalisation of GBP1.00 billion.
BBGI CEO Ball said on Friday: "The offer from BCI presents an opportunity for shareholders to realise in cash the value of their holdings at a level that may not be achievable in the medium term under current market conditions."
BBGI Chair Sarah Whitney said: "While we remain confident in BBGI's ability to generate stable returns for shareholders over the long term, the boards' recommendation of the offer from BCI was made after careful evaluation of all available options. We believe the terms of the offer are fair and reasonable, and offers an attractive value that is in excess of the company's reasonable medium-term prospects on a standalone basis."
The company expects its takeover to complete in the third quarter of 2025.
By Tom Budszus, Alliance News slot editor
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