London-listed Bilfinger Berger Global Infrastructure (BBGI) is looking to raise at least £70 million (€82 million; $110 million) in new capital to fund asset acquisitions from parent group Bilfinger, the fund announced in a regulatory note this week.
The £70 million 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.
But the fund said it may seek to raise a maximum of 125 million new shares if it gets the opportunity to acquire further assets from Bilfinger, following the latter’s end-of-May announcement that it plans to exit the 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.
BBGI will publish a prospectus on the new fundraising by the end of June with a mid-July closing targeted. Earlier in May, the fund said it was aiming to increase the size of its stakes in two Northern Irish college PPP projects in a £2.5 million deal due to close in August.
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.