BBGI Global to be bought by Canadian pension fund in £1.06bn deal

(Sharecast News) - BBGI Global Infrastructure shot higher on Thursday after saying it had agreed to be bought by Canadian pension fund manager British Columbia Investment Management in a £1.06bn deal. Under the terms of the acquisition, BBGI shareholders will receive 147.5p per share in cash. This is a premium of 21.1% to the closing share price on Wednesday.

BBGI chief executive Duncan Ball said: "Since its launch in 2011, BBGI has grown to become one of the UK's largest listed infrastructure funds, with a globally-diversified portfolio of 56 low-risk, core infrastructure assets that deliver sustainable and long-term index-linked cash flows. Over this period, we have delivered a total net asset value return of 176.3%.

"Although both the BBGI supervisory board and the BBGI management board are confident that BBGI can continue to deliver sustainable cash flows to BBGI shareholders, the offer from BCI represents a premium to undisturbed share price and to net asset value, and provides BBGI shareholders with the opportunity to realise the value of their holdings in cash, at an attractive value in excess of the reasonable medium term prospects for BBGI on a standalone basis.

"As a result, both the BBGI supervisory board and BBGI management board have concluded that the offer is in the best interests of BBGI shareholders and BBGI as a whole."

At 0930 GMT, the shares were up 18% at 143.85p.