The British Columbia Investment Management Corp. has offered to take infrastructure asset manager BBGI Global infrastructure S.A. private, the management company and manager jointly announced on February 6. The deal for the Luxembourg-based and U.K.-listed manager is worth 1.06 billion pounds ($1.31 billion) and has been unanimously recommended by the BBGI Supervisory Board and the BBGI Management Board, with shareholders to vote on the transaction at a general meeting.
According to the transaction announcement, BBGI (originally Bilfinger Berger Global Infrastructure) has an estimated portfolio value of 993 million pounds across 56 investments in North America, Canada and Australia. The buyout offer represents a 21% premium to BBGI shares.
“We believe BBGI will be a compelling and strategic addition to BCI’s Infrastructure and Renewable Resources portfolio, with a diversified mix of international holdings across the transport, clean energy, healthcare, education and social infrastructure sectors,” said Grant Hodgkins, BCI’s senior director of infrastructure and renewable resources, in a statement.
BBGI wholly owns 47% of its assets, and it is the majority owner of 80% of its portfolio assets by value. Its investments include numerous motorways and educational institutions in the U.K. and Europe; bridges, highways and hospitals in Canada; and hospitals and correctional facilities in Australia.
BCI manages C$28.1 billion ($19.63 billion) in infrastructure and renewable resources assets, a portfolio which includes real assets investments in utilities, energy, transportation, renewable resources and communications. The pension fund managed C$250.4 billion in assets as of March 31, 2024.
According to the fund’s 2023-2024 annual report, BCI’s infrastructure and renewable resources portfolio returned 7.0%, 8.5%, 9.2% and 9.7% over the past one, five, 10 and 15 years, annualized.
BCI manages 20 public sector pension funds in British Columbia, including 10 public sector plans, three insurance plans and 16 special purpose funds, comprised of public trusts, endowments and government bodies. The plan has more than 740,000 beneficiaries and 2.7 million active workers.
“We see many opportunities to leverage our expertise, global relationships, and access to long-term capital, alongside BBGI’s experienced management team and proven asset management strategies, to drive further growth and value creation across the BBGI portfolio,” Hodgkins said in the announcement.
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Tags: BBGI, BCI, British Columbia Investment Management Corp., Grant Hodgkins, Infrastructure, Real Assets