BBGI SICAV S.A. announced last week that it has entered into a Sale and Purchase Agreement with Sundt A.S. to acquire a further 41.2% equity interest in the E18 Roadway Project in Norway. Upon completion, BBGI will own 100% of the equity interest in E18.
E18 is a long term PPP concession contract to operate and maintain a new section of highway between Grimstad and Kristiansand in Norway. The 38km dual carriageway road opened in August 2009 and is part of the trunk road from Oslo to Kristiansand. It is a key element of the transport corridor between southern Norway and the Continent as well as an important connection between the two cities. The concession expires in 2034 and is availability-based with no volume risk.
Duncan Ball, Co-CEO said:
"We are very pleased to increase our stake in this high quality PPP/PFI project. This acquisition was made on accretive terms and was concluded without engaging in an auction process."
Frank Schramm, Co-CEO said:
"This acquisition demonstrates our ability to efficiently add value by acquiring stakes in existing projects where our existing knowledge of the asset serves us well. BBGI will selectively pursue further growth opportunities in both new and existing assets."
The acquisition will be funded from the Company's existing cash resources.
BBGI announced on 31 March 2014 that it also completed the acquisition of 37.5% of the equity and subordinated debt interests in Mersey Gateway Bridge (MGB). In April, the listed global infrastructure investment company, announced that it has completed the acquisition of 50% equity and loan note interest in four operational PPP Projects in Germany from Hochtief PPP Solutions GmbH.