BBGI Global Infrastructure SA (LSE:BBGI) has received a £1.6 billion all-cash offer from Canadian pension fund manager British Columbia Investment Management (BCI).
BBGI's board has agreed to the terms of a deal, whereby shareholders will be entitled to receive 147.5p per share in cash, a premium of 21% to yesterday's closing price.
The offer also values the infrastructure-focused investment company at a premium of 3.4% to the estimated net asset value per share of 142.7p as at 31 December.
If BBGI declares an interim dividend in respect of the six months to December or makes any other distribution, the offer may be reduced by that amount.
Duncan Ball, chief executive officer of BBGI, noted BBGI has grown to become one of the UK's largest listed infrastructure funds, with a globally-diversified portfolio of 56 infrastructure assets that deliver long-term index-linked cash flows, and since its creation in 2011 has 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, he said both the supervisory Board and management board have concluded that the offer "is in the best interests of BBGI shareholders and BBGI as a whole".
BCI manages assets worth C$250 billion in gross assets on behalf of its British Columbia public pension fund and institutional clients.