British Columbia Investment Management Corporation (BCI) has agreed to acquire BBGI Global Infrastructure S.A. in an all-cash transaction valued at approximately £1.06 billion.
The deal, which has received unanimous recommendation from BBGI’s supervisory and management boards, will see shareholders receive 147.5 pence in cash for each share held.
BBGI Global Infrastructure shares surged 17% on the news.
The offer represents a significant premium of 21.1% over BBGI’s closing share price of 121.8% on 5 February 2025 and a 20.1% premium to the company’s three-month volume-weighted average share price.
BBGI Global Infrastructure shares have struggled over the past year and it has traded at a significant discount to the value of the underlying value of its portfolio of infrastructure and public assets in the UK, Europe and Canada.
The portfolio contains assets such as the A7 Motorway in Germany, Avon & Somerset Police Headquarters, and the Ayrshire and Arran Hospital.
Ultimately, the offer is an attractive opportunity for shareholders to realise the value of their holdings in cash. The boards concluded that the offer exceeds the reasonable medium-term prospects for BBGI as a standalone business.
BCI, one of Canada’s largest institutional investors with CAD $250 billion in assets under management, will make the acquisition through its Infrastructure & Renewable Resources programme. The investment giant manages a diverse portfolio of public and private market investments on behalf of British Columbia’s public pension fund and institutional clients.
The Canadian investment firm cited BBGI’s high-quality portfolio of core infrastructure assets and its development platform as key attractions, noting these align well with BCI’s strategy of achieving long-term stable returns within a low to moderate-risk framework. objectives with greater flexibility and access to capital.