BBI poised to offload PD Ports for $1
The recapitalisation of Australian port investor Babcock& Brown Infrastructure has taken a massive step forward, with Canadianinfrastructure investor Brookfield Asset Management taking a 49.9% stake in theDalrymple Bay Coal Terminal.
The deal is one part of a complex A$1.1bn (US$1bn) recapitalisation package.
If approved by shareholders, Brookfield will pay US$295m for the 49.9% “economic interest” in the Dalrymple Bay Coal Terminal, the world’s third-largest coal export facility.
Also, Brookfield will acquire the UK ports group PD Ports for a “nominal sum” while assuming £100m of its debt. The deal must be done before debt repayments fall due early next year.
BBI and its lenders came to an extension agreement for the borrowing on July 31, but that grace period is nearly up and a refinancing or repayment scheme must be in place by the end of October.
BBI has a A$9.1bn debt burden weighing heavy around its neck and has been looking to offload assets to balance the sheets.
