A big civic infrastructure investor listed in London has agreed to a £1 billion takeover by a Canadian pension fund.
BBGI Global Infrastructure has recommended that its shareholders back a 147.5p-per-share cash offer from British Columbia Investment Management as the fund’s growth would be “best served as a private business”.
The group, which invests in transport networks, schools andhospitals in the UK and overseas, has been listed on the London Stock Exchange since 2011 but said the takeover would provide “access to capital” from British Columbia, a public sector pensions provider with assets under management of about $170 billion.
The infrastructure investment sector has been tipped for consolidation as listed funds trade at substantial discounts to their net asset value (NAV). The average discount for