British Columbia Investment Management Corporation (BCI), a Canadian institutional investor, is acquiring the BBGI Global Infrastructure trust.
The offer price of 147.5 pence per share corresponds to a 21% premium on yesterday’s closing price and a 3.4% premium to the estimated net asset value (NAV) of 142.7 pence per share as at 31 December 2024.
Advised by Jefferies Financial Group, the BBGI board considers the terms to be “fair and reasonable” and unanimously recommends shareholders vote in favour of the resolutions at the next general meeting, which will be announced within 28 days.
This deal is in the best interests of shareholders as a whole, according to the board and to BBGI chief executive officer Duncan Ball.
“Although both the supervisory board and the management board are confident that BBGI can continue to deliver sustainable cash flows to shareholders, the offer from BCI represents a premium to the undisturbed share price and to net asset value,” he said. “It also provides 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.”
BBGI is known for its “super-core” infrastructure exposure and has been recommended by experts multiple times on Trustnet.
BCI manages a portfolio of public and private market investments on behalf of the British Columbia public pension fund and other institutional clients, and has CAD250bn in assets under management.