Babcock & Brown Infrastructure Group
(ASX:BBI) shareholders are to vote on a $1.8 billion recapitalisation proposal announced by the company to address its urgent financial position.
The company says its recapitalisation proposal has been developed in conjunction with global infrastructure owner Brookfield, who will emerge as a strongly aligned cornerstone investor.
Babcock & Brown Infrastructure Group will be renamed Prime Infrastructure and management will be internalised.
Brookfield is to invest approximately $713 million in return for new shares and $295 million for certain assets, the infrastructure owner will acquire a 49.9 per cent interest in the Dalrymple Bay Coal Terminal, and 100 per cent of Babcock & Brown Infrastructure’s interests in U.K. PD Ports, for nominal proceeds.
Brookfield will also acquire $625 million worth of new shares with institutional investors acquiring a further $625 million of shares and $250 million to be taken up by existing retail investors.
The debt laden company has $8.864 billion in debt owing with $3 billion maturing in fiscal 2010 and fiscal 2011.
Babcock & Brown Infrastructure Group posted a loss in 2008 of NZ$37.7 million.
