“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 cash flows,” said Duncan Ball, chief executive officer of BBGI, in a press statement on Thursday 6 February 2025. Photo: BBGI

“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 cash flows,” said Duncan Ball, chief executive officer of BBGI, in a press statement on Thursday 6 February 2025. Photo: BBGI

Luxembourg-based BBGI Global Infrastructure has agreed to be acquired in an all-cash offer from British Columbia Investment Management Corporation valued at €1.27bn, with a 21.1% premium over the last share price.

BBGI Global Infrastructure SA, a Luxembourg-based infrastructure investment company, has announced that it has reached an agreement with the British Columbia Investment Management Corporation (BCI) for an all-cash takeover offer. This acquisition, which is set to be made by Bidco, a special limited partnership indirectly controlled by BCI, values BBGI at approximately €1.27bn (£1.062bn). This offer represents a 21.1% premium to BBGI’s closing share price of 121.8 pence on 5 February 2025 and a 20.1% premium to the three-month volume weighted average price of 122.9 pence per share for the period ending 5 February 2025.

Under the terms of the deal, BBGI shareholders who accept the offer will receive 147.5 pence in cash for each BBGI share they hold. Additionally, the offer values BBGI at a premium of 3.4% to the company’s estimated net asset value of 142.7 pence per share as of 31 December 2024.

The transaction, which is subject to customary regulatory approvals, is expected to complete in the third quarter of 2025. An expected timetable of key events related to the offer will be provided in the offer document.

BCI, one of the largest institutional investors in Canada, had C$250bn in gross assets under management as of 31 March 2024. The corporation manages a diversified portfolio of investments on behalf of its British Columbia public pension fund and other institutional clients. This acquisition of BBGI will be made through BCI’s Infrastructure & Renewable Resources programme, which focuses on long-term infrastructure assets across various sectors including utilities, energy, telecommunications and transportation.

BCI has expressed confidence in BBGI’s strong position as a business with a well-established portfolio of core infrastructure assets. The company also views BBGI’s growth prospects as favourable, with potential for further development under private ownership. The acquisition aligns with BCI's I&RR program’s strategy of achieving stable, long-term returns through a low to moderate-risk portfolio.

Duncan Ball, chief executive officer of BBGI, noted in the announcement that while the company is confident in its continued performance, the offer from BCI provides shareholders with an attractive premium, allowing them to realise the value of their holdings in cash.

Grant Hodgkins, senior director at BCI, stated that BBGI would be a strategic addition to their portfolio and encouraged shareholders to accept the offer to realise cash value for their shares.

The deal is expected to complete in Q3 2025.

Related articles