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As announced, the engineering and services group Bilfinger Berger has divested its Concessions portfolio. A contract has been signed with Bilfinger Berger Global Infrastructure SICAV S.A. (BBGI), an infrastructure fund listed on the London Stock Exchange, for the takeover of the projects available for sale from Bilfinger. BBGI is planning a capital increase to finance the transaction. Already in the middle of this year, the two parties had agreed on BBGI's acquisition of two additional projects in Canada. The completion of this sale took place also last week.
Bilfinger will generate gross proceeds of €270 million from the two transactions, the capital gain is in excess of €50 million. The company said that transaction costs and expenses for winding-up the discontinued Concessions activities amount to more than €10 million. Depending on the approval of the parties involved, several projects can be transferred to the buyer in the current year and the remaining portfolio can be transferred in 2014.
Bilfinger will still retain the M6 Duna and the M6 Tolna highways in Hungary as well as the A1 in Germany in its portfolio. In light of the development of traffic volumes, the A1 autobahn project is currently under review.
BBGI announced on November 14th that it has completed the acquisition of a 50% equity and loan note interest in Kelowna & Vernon Hospitals and 100% equity and loan note interest in North East Stoney Trail.
The Kelowna & Vernon Hospitals project is a long term PPP concession contract to operate and maintain a new Patient Care Tower, a new University of British Columbia Okanagan Clinical Academic Campus and car park at Kelowna General Hospital and a new Patient Care Tower at Vernon Jubilee Hospital. These facilities are in the cities of Kelowna and Vernon in the interior of British Columbia, Canada. The project is availability-based with no volume risk.
North East Stoney Trail is a long term PPP concession contract to operate and maintain a 21km section of new highway, forming part of a larger ring road developed in Calgary, Alberta, Canada. The project is an availability-based road project with no traffic volume risk.
The total consideration paid by BBGI is CAD$41.3 million.
BBGI own a portfolio of 22 infrastructure assets. These projects are operational PPP / PFI assets and are supported by contracted, public sector-backed revenue streams, with inflation-protection characteristics.