BAM is (in aggregate) getting 70% of DBCT, 100% of PD Ports, and...

BAM is (in aggregate) getting 70% of DBCT, 100% of PD Ports, and 40% of all remaining BBI assets for a total sum of $1.2b (I think). The recap of BBI is just 'a box to be ticked' so that they can achieve this. The bulk of their profit will not come from movement in the value of shares... thats not how they work.

Further, its very risky investing in an asset because some other smart person is investing - you dont know what their angle is.

For example,
- Do they have upstream/downstream assets which will benefit?
- Does it help with diversification of assets in their larger portfolio?
- Do they already have an exit strategy in place?
- Are they hedging away some of the risk?

If PIG is such a good thing going forward, why did BAM have to take 50% of DBCT? Why didnt they leave it in the entity, and just take a larger stake in the final pie?

Finally, I think a lot of people are investing in PIG via the SPP, in an attempt to 'claw back' some past BBI losses (ie throwing good money after bad). When the Stag doesnt eventuate on the float, watch them run for the exits.

My thoughts - avoid like the plague. But each to their own.


Disc: Very Minor BEPPA, just so I get the correspondence, and can ask questions at the meetings.