Elliot Gulliver-Needham, Investment Reporter, CityAM, 6 February 2025:
BBGI Global Infrastructure has been offered a £1bn takeover from a Canadian pension giant, with the FTSE 250 trust’s board backing the deal.
In a stock exchange notice, BBGI said $250bn asset manager British Columbia Investment Management had offered 147.5p a share for the entire trust, 21 per cent above the trust’s share price yesterday.
The offer also values BBGI at a 3.4 per cent premium to its underlying assets, as the trust had been trading on a significant discount to its assets in recent months.
While the deal has been backed unanimously by the board and praised by analysts, many cautioned that the takeover was a natural consequence of the wide discounts among investment trusts.
“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,” said James Carthew, head of investment company research at QuotedData.
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