We have not got access to the management agreement. Maybe, the manager has some say on what assets can be sold. As a shareholder however it is in BNB's interest to not delay these.
Essentially, we as shareholders can resolve to remove BBIS as the manager. However, the Beppa convesion issue arises so we wouldn't do it.
No person would buy BBI outright because of the management arrangement with BNB. What the analyst is saying is that for this to happen BNB management rights would have to go. However, it is a catch twenty-two for BNB as this will dilute their holdings via Beppa convesion.
I am quite confident that no takeover of BBI will be contemplated. All transactions will occur on asset level.
Why do I say this? Unlike BBP, which hold sector specific assets, making it desirable for takeover by a sector player, BBI has diversified assets. Therefore coal miners are interested in the coal terminal, Queensland Rail in Westnet, Port operators in ports etc. Also wholesale income funds who need to get mangement fees themselves, will buy at asset level not stapled security level.
All my views.
Cheers
BBI Price at posting:
3.0¢ Sentiment: LT Buy Disclosure: Held
