Cristian Angeloni, Investment Week, 6 February 2025:
BBGI Global Infrastructure trust has agreed to sell the vehicle to Boswell Holdings, a newly formed special limited partnership indirectly controlled by British Columbia Investment Management Corporation.
The cash offer, which is being unanimously recommended by the BBGI board and management to shareholders, will see Boswell pay 147.5p per BBGI share, valuing the trust at more than £1bn on a fully diluted basis..
BBGI said the price represents a 21.1% premium to the 5 February closing price of 121.8p and a 20.1% premium to the three-month volume weighted average price of 122.9p.
Additionally, the trust noted the cash offer values BBGI at a 3.4% premium to its net asset value. According to data from the Association of Investment Companies, the trust is currently trading at a near 18% discount and holds more than £1bn in assets.
The sale will be subject to shareholder approval, as will be the resolution to potentially implement an asset sale by Boswell once BBGI’s listing is cancelled..
James Carthew, head of investment company research at QuotedData, said he felt like “Cassandra” as he had been warning investors “for ages” of their failure to recognise “the value in infrastructure and renewables sectors”, meaning that eventually “a corporate investor or big institutional investor would”.
He continued: “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 do not take advantage of the discounts and high yields on offer, someone else will.”
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