British Columbia Investment Management Corporation (BCI) has created a ‘bidco’ – Boswell Holdings 3 S.C.Sp. – to launch a cash bid for BBGI Global Infrastructure.
BCI and BBGI have announced that they have reached agreement on the terms of a recommended all cash offer to be made by Bidco. BBGI shareholders who accept the offer will be entitled to receive 147.5p per share in cash. The offer is unanimously recommended by the BBGI Supervisory Board and the BBGI Management Board. BCI is amongst the largest institutional investors in Canada, with CAD $250bn in gross assets under management as of 31 March 2024. BCI manages a portfolio of diversified public and private market investments on behalf of its British Columbia public pension fund and institutional clients.
The offer values the entire issued and to be issued share capital of BBGI at approximately £1.062bn on a fully diluted basis, and represents a premium of approximately:
- 21.1% to the closing price per BBGI share of 121.8p on 5 February 2025 (the last business day prior to the announcement); and
- 20.1% to the three-month volume weighted average price of 122.9p per BBGI share to 5 February 2025.
- Further, the offer values BBGI at a premium of 3.4% to BBGI’s estimated net asset value of 142.7p as at 31 December 2024.
Part of the cash offer will come from a dividend. BBGI shareholders will get an interim dividend relating to the period 1 July 2024 to 31 December 2024 prior to the completion of the offer and in such event the offer price will be reduced by the value of this interim dividend.
2,611,023 BBGI shares representing approximately 0.4% of shares in issue have been irrevocably committed to accepting the bid.
[QD comment: James Carthew – Now I feel like Cassandra, I have been warning for ages that if investors didn’t recognise the value in the infrastructure and renewables sectors, then a corporate investor or a big institutional investor would. BBGI is perceived to be the quality name in the sector because it is designed to be low risk. Nevertheless, there is a read across to peers. These NAVs are real and if you don’t take advantage of the discounts and high yields on offer, someone else will.]
BBGI : Cash bid for BBGI Global Infrastructure exposes madness of discounts
Not what I want as a Shareholder………..I will vote NO
This cash bid for BBGI Global Infrastructure seems like a bold move by BCI. It raises some interesting questions about the value of discounts in today’s market. I’m curious to see how shareholders will react to this offer!