British Columbia Investment Management Corporation (BCI) is taking BBGI Global Infrastructure private in a £1.06bn (€1.27bn) deal.
The C$250bn (€168bn) Canadian pension fund’s infrastructure and renewable resources (I&RR) arm is offering BBGI shareholders 147.5 pence per share in cash, representing a 21.1% premium over the UK-listed infrastructure fund’s most recent closing price.
BBGI’s portfolio, consisting of 56 assets spread across five different geographies, had an estimated value of £993m as at the end of December 2024.
The BBGI board said it intends to unanimously recommend that shareholders accept the offer and vote in favour of the resolutions at a general meeting.
Duncan Ball, CEO of BBGI, said that since BBGI’s launch in 2011, the firm 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 cash flows. Over this period, BBGI has delivered a total net asset value return of 176.3%.
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.
“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.”
Grant Hodgkins, senior director of BCI’s C$28bn I&RR business, said: “We believe BBGI will be a compelling and strategic addition to BCI’s infrastructure and 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.”
The offer is expected to be completed in the third quarter of 2025, after which BBGI shares are expected to be delisted from the Official List and the London Stock Exchange’s Main Market.
To read the latest IPE Real Assets magazine click here.
