(Alliance News) - BBGI Global Infrastructure SA on Wednesday announced three UK social infrastructure investments, as well as a plan to raise GBP50 million.
BBGI will buy 16 community fire stations the north west of England, the Ayrshire and Arran Hospital, an acute mental health facility in Ayr, Scotland, and also a 33% stake in a roadway in Aberdeen, also in Scotland.
BBGI said the purchase prices are confidential, but noted it will pay for the deals using its existing cash and its GBP230 million revolving credit facility.
It noted the North West Fire & Rescue portfolio includes seven sites in Merseyside, five in Cumbria and four in Lancashire.
"The facilities became fully operational in 2013 and the concession runs until 2038. The facilities play an integral role in delivering fire safety and protection to more than 500,000 people in the local communities," BBGI added.
The deal closed on Tuesday.
The purchase of the Ayrshire and Arran Hospital also occurred on Tuesday. The hospital became operational back in 2016 and the concession there runs until 2041.
The investment to take a 33% stake in the Aberdeen Western Peripheral Route is still "subject to final funder clearance", which BBGI expects to occur soon. The road includes 47 kilometre new dual carriageway and two river crossings.
"We are delighted to invest in these high-quality, availability-based social infrastructure assets in the UK with strong ESG credentials," Co-Chief Executives Duncan Ball and Frank Schramm said.
In addition, BBGI unveiled plans to raise GBP50 million in a placing at 166 pence per share. This would represent a 7.1% discount from its 178.6p closing price on Tuesday.
It added: "The company will use the net proceeds of the placing to pay down its RCF and provide the company with additional financial flexibility to pursue its pipeline of near-term opportunities."
BBGI shares were 4.4% lower at 170.79p each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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