BBGI Global Infrastructure reports active asset management, dividend increase +6% YOY

BBGI Global Infrastructure S.A. (LON:BBGI), the global infrastructure investment company, has announced its full year results for the year ended 31 December 2024.

Key Highlights

· Resilient performance of BBGI’s globally diversified portfolio of 56 high-quality, 100% availability-style core-infrastructure assets.

· Dividend remains well covered at 1.37x, with a targeted increase of 2% to 8.57pps for 2025.

· NAV total return in the year of 2.1%.

· BBGI’s ability to invest in new opportunities remained constrained by its share price trading at a discount to NAV and the continued disconnect between public and private markets.

Subsequent event

· Recommended cash offer for BBGI.

Duncan Ball, CEO of BBGI, said:

“Over the past year, we have navigated a challenging market environment by maintaining financial discipline and focusing on delivering sustainable cash flows from our defensive infrastructure portfolio. Our investments in essential Social Infrastructure assets have ensured stability across the portfolio.

Despite this, BBGI’s share price has consistently traded at a discount to NAV since April 2023 which has constrained our access to capital markets and remains a key impediment to seizing new growth opportunities. Over time, as concessions expire and assuming no access to capital and no further investments, eventually the NAV of the business would be expected to decline on an annual basis given the amortising nature of BBGI’s assets.

The Offer from BCI presents an opportunity for shareholders to realise in cash the value of their holdings at a level that may not be achievable in the medium term under current market conditions.”

Sarah Whitney, Chair of Supervisory Board, commented:

“BBGI’s globally diversified portfolio has continued to deliver reliable cash flows in line with expectations, despite the challenging macroeconomic environment.

While we remain confident in BBGI’s ability to generate stable returns for shareholders over the long term, the Boards’ recommendation of the Offer from BCI was made after careful evaluation of all available options. We believe the terms of the Offer are fair and reasonable, and offers an attractive value that is in excess of the Company’s reasonable medium-term prospects on a standalone basis.”

Financial highlights

FY 2024 dividend declared 8.40pps +6% increase year-on-year	FY 2025 target dividend growth +2% 8.57pps	Cash dividend cover 1.37x (FY 2023: 1.40x)
NAV 142.7pps (31 December 2023: 147.8p)	FY 2024 NAV total return +2.1% (FY 2023: +3.8%)	Annualised NAV total return since IPO 8.1% as at 31 December 2024
High-quality inflation linkage 0.5% (FY 2023: 0.5%)	Ongoing charges 0.92% (FY 2023: 0.93%)	Net cash £27.4m No drawings under RCF

Recommended cash offer for BBGI

On 6 February 2025, BBGI and Boswell Holdings 3 S.C.Sp (‘Bidco’) announced a Board-recommended all-cash Offer (the ‘Offer’) for the entire issued and to be issued share capital of BBGI by Bidco, which is a newly formed special limited partnership indirectly controlled by British Columbia Investment Management Corporation (‘BCI’), for a price of 147.5pps. As a result of the declaration and payment of the second interim dividend, and as set out in the Offer Document published on 6 March 2025, the offer price was reduced to 143.3pps.

A Circular was published on 6 March 2025 convening a General Meeting of BBGI on 10 April 2025 to consider and, if thought fit, approve: (i) the sale by BBGI, directly or indirectly, of all or any of its assets and undertakings to Bidco (or an affiliate of Bidco) following the Offer becoming unconditional and the de-listing of the BBGI shares; and (ii) the appointment of Bidco’s nominees to the Supervisory Board subject to the de-listing of the BBGI shares and the approval of the Luxembourg Commission de Surveillance du Secteur Financier, in each case as further described in the Circular.

The BBGI Boards, who have been so advised by Jefferies International Limited as to the financial terms of the Offer, consider the terms of the Offer to be fair and reasonable. In providing advice to the BBGI Boards, Jefferies has taken into account the commercial assessments of the BBGI Boards. Accordingly, the BBGI Boards are unanimously recommending shareholders accept the Offer and vote in favor of the proposed resolutions as they have irrevocably undertaken to do, or procure to be done, in respect of their own beneficial holdings of BBGI shares.

Financial and operational highlights

Operational performance

BBGI maintains a globally diversified portfolio of 56 high-quality, 100% availability-style infrastructure assets

Achieved a consistently high asset availability rate of 99.9%.

Net cash generated at the Portfolio Company level ahead of projections, with no material lockups or defaults.

Focus on partnering with highly rated, creditworthy public sector entities in countries with solid credit ratings (AA to AAA).

Generating high-quality, predictable and inflation-linked cash flows

Contracted high-quality inflation linkage of 0.5%.

6% dividend growth achieved for FY 2024; FY 2025 target growth of 2% reaffirmed.

The cash dividend cover was 1.37x.

Weighted average discount rate increased to 7.6% (FY 2023: 7.3%), reflecting an equity risk premium of c.3.5%.

Portfolio of investments continued to perform strongly over the year, with net cash generated ahead of projections.

Continued focus on prudent financial management

In FY 2024, NAV total return per share was 2.1%, driven by dividends paid (8.2pps), partially offset by higher discount rates and foreign exchange movements.

As of 31 December 2024, BBGI maintained a net cash position of £27.4 million with no structural gearing at Group level and no refinancing risk at the Portfolio Company level.

Despite the increasing cost pressures attributed to heightened levels of inflation in recent times, the ongoing charges of 0.92% remained at competitive levels.

Active asset management