Specialist infrastructure company Babcock & Brown Infrastructure Group
(ASX:BBI) has warned that its proposed recapitalisation plan and asset disposal may result in a $900 million impairment charge.
The company’s proposed plan involves a comprehensive equity recapitalisation transaction combined with the sale of certain assets and says it is in active dialogue with a cornerstone investor about a potential recapitalisation transaction.
Babcock & Brown Infrastructure says given the range of potential outcomes of the transaction, it stresses that the current position is still highly uncertain and there is no assurance that an agreement will be reached.
The company only recently incurred a pre-tax impairment charge of $895 million in its accounts for the year to June 30 resulting in a reported loss of $977 million.
In the company’s annual report auditors Deloitte, warned that there was a material uncertainty about whether the company can continue, which is an ongoing concern.
Deloitte says this concern is because the company’s liabilities exceed its current assets by $426.5 million, excluding those assets and liabilities that are up for sale. Babcock & Brown Infrastructure posted a $45.6 million loss in 2008.
Airport owner Macquarie Airports (ASX:MAP) says traffic across its portfolio of airports continued to demonstrate the improving trend of recent months in August.
Sydney Airport recorded modest growth with a 1.6 per cent increase in domestic passenger numbers for the month, and a 1.4 per cent rise in international travellers flying.
CEO Kerrie Mather says the company is seeing strong growth on major routes where capacity additions have been occurring such as the Trans-Pacific and Middle East routes.
Ms Mather says across its European airports the declines in origin and destination traffic are now in the 3 - 4 per cent range, a significant improvement over the performance experienced earlier in the year.
Macquarie recently sold its 35.5 per cent stake in Bristol Airport to Ontario Teachers Pension Plan.
Macquarie is asking shareholders to approve a proposal to acquire the management rights of the company from Macquarie Group for $345 million. Macquarie Airports 2008 net profit was $2 billion.
Professional service provider to the resource and energy sectors WorleyParsons Ltd (ASX:WOR) has been awarded a contract by United States Steel Corporation to form a Capital Projects Alliance to support four major integrated steel works and its U.S. tube making operations.
WorleyParsons says it expects the contract to generate revenues in excess of US$50 million.
The company says the alliance agreement covers engineering projects with an installed value of between US$100,000 and US$100 million.
Managing director of WorleyParsons for the U.S., Latin America and the Caribbean region, Robert Edwardes says the contract is consistent with the company’s strategy to continue to expand its involvement in the global steel industry.
The agreement will commence in November 2009 and have a nominal term of three years with mobilisation activities to support the contract’s launch commencing immediately. WorleyParsons profits have been gradually rising over the past four years.
Junior gold producer Allied Gold Ltd (ASX:ALD) says it intends to make a takeover offer for all of the outstanding shares in Toronto listed Australian Solomons Gold.
Allied is offering 0.85 Allied Gold shares for every Australian Solomons Gold share valuing the company at $56.3 million.
Independent directors of Australian Solomons Gold have unanimously recommended the offer in the absence of a superior proposal.
Allied Gold which operates the Simberi gold mine in Papua New Guinea says the merger of Allied Gold and Australian Solomons Gold will create a larger, more diversified gold production and exploration company with material mining interests in the Pacific Rim.
The new company is expected to produce upwards of 300,000 ounces of gold per annum from 2013 from current projects.
Allied Gold says it is seeking to list on the Toronto stock exchange. Allied Gold has posted net losses over the last five years.
