Bilfinger Berger Global Infrastructure (BBGI) has raised £85 million (€99 million; $129 million) from a placing, open offer and offer for subscription on the London Stock Exchange.
The firm announced in mid-June that it would be seeking to raise £70 million, but has subsequently said that the issue was “substantially oversubscribed”.
The new capital is primarily destined to fund the purchase of one road and one social accommodation project, both located in Canada, from Bilfinger, with which BBGI is in “advanced discussions”. BBGI said it would use any leftover cash to pay down debt.
Announcing the capital raising, BBGI said it was in discussions with Bilfinger about the potential acquisition of a further pipeline of assets (worth in excess of £200 million) and that – as a result – it expected that “an additional larger equity capital raising will be undertaken in due course”.
At the end of May, German developer Bilfinger announced a plan to exit its concessions business and divest its portfolio of projects in Australia, North America and Europe.
The engineering and services group cited the “declining strategic role” of Bilfinger Berger Project Investments, “the public-private partnership division of Bilfinger”, as the reason for its decision and said it will re-focus on its core business and industrial services, amid a company-wide shift out of construction.
When BBGI listed on the London Stock Exchange in December last year, it was with the aim of buying up to 19 projects from Bilfinger, which owns 19.95 percent of the vehicle. Since then it has been busy adding assets to its portfolio, such as the £35.9 million Victoria Prisons PPP/PFI project in Australia in March this year.