PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

Bilfinger Berger announces GBP70m capital raising

Bilfinger Berger Global Infrastructure (BBGI) has announced an open offer and placing with a target issue size of GBP70m and an issue price of GBP1.07 per new share.

 
The 1:6 offer represents a premium of 4.26 per cent to the estimated NAV per existing ordinary share of 102.63p as at 30 April 2013, and a discount of 8.5 per cent to the closing share price of 117p as at 21 June 2013.
 
The target size of the capital raising may be increased to a maximum of GBP133.75m which represents the current maximum shareholder authority to issue new shares otherwise than on a pre-emptive basis. This is because BBGI has the opportunity to acquire more assets from Bilfinger Group following its announcement of its disposal of its PFI assets in May this year.
 
BBGI raised GBP207.8m in December 2011 through an IPO which was invested in a portfolio of assets provided from Bilfinger Group.
 
BBGI also has a multicurrency revolving loan facility of GBP35m provided by The Royal Bank of Scotland, National Australia Bank and KfW IPEX-Bank, of which GBP12.9m in principal was outstanding as at 21 June 2013 having been used to make further acquisitions towards the existing portfolio.
 
The company’s portfolio of assets has performed well through a period when equity markets generally have been volatile and the directors continue to expect the group’s portfolio to perform in line with the forecasts in the valuation models.
 
BBGI is looking to acquire a 50 per cent equity stake in the Kelowna & Vernon Hospitals and a 100 per cent equity stake in North East Stoney Trail for CAD41.3m subject to entering into the acquisition agreement, and subject to adjustments in accordance with the terms of such agreement.
 
BBGI is in active discussions with Bilfinger Group regarding the potential acquisition of additional projects following the announcement on 28 May 2013 that Bilfinger Group is proposing to divest its concessions business unit which currently owns investment capital in PFI/PPP projects in Australia, North America and Europe. Bilfinger Group has confirmed that the company will be invited in the near term to make an offer to acquire additional Bilfinger assets under the terms of the pipeline agreement. In addition the company is actively pursuing acquisitions from third parties.
 
The directors currently anticipate that the aggregate value of the additional Bilfinger assets that are likely to be offered to the BBGI for acquisition under the terms of the Pipeline Agreement in the near term will exceed the maximum size of the capital raising pursuant to the Issue. Assuming that is the case, the directors currently expect that an additional equity capital raising will be undertaken.
 
Existing shareholders will be able to subscribe for further ordinary shares in the company and investors who would not otherwise have been able to invest in the company will have the opportunity to make an investment.
 
The market capitalisation of the company will increase following the issue and it is expected that the secondary market liquidity of the ordinary shares will be enhanced through a larger and more diversified shareholder base and the cost structure also reduced.

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured