BBGI steps up stake in Norwegian road

The London-listed fund now owns 100% of the E18 project.

Bilfinger Berger Global Infrastructure (BBGI) has bought a further 41.2 percent equity interest in Norway’s E18 Roadway Project.

The acquisition, made outside of an auction process, will be funded from BBGI’s existing cash resources. The additional stake was acquired from Sundt, a Norwegian developer, for an undisclosed amount.

The London-listed firm fund manager will own 100 percent of the project upon completion of the transaction.

E18 is a public-private partnership (PPP) concession contract to operate and maintain a new section of highway between Grimstad and Kristiansand in Norway. The concession, which expires in 2034, is availability-based with no volume risk.

The 38 kilometre dual carriageway road, opened in August 2009, is seen as a key part of the transport corridor between southern Norway and the continent as well as an important connection between the cities of Oslo and Kristiansand.

The acquisition follows on a strong start of the year for BBGI, which has completed 15 transactions so far in 2014. Prior to the E18 deal these had a total value of £72.8 million (€89.6 million; $121.9 million).