By Bill Lindsay
Of DOW JONES NEWSWIRES
SYDNEY (Dow Jones)--Australia's Babcock & Brown Infrastructure Group (BBI.AU)
suspended trading in its securities Tuesday due to uncertainty over the completion of the
planned sale of a NZ$2.05 billion New Zealand power distribution business.
The global infrastructure investment fund said issues have arisen over the sale of a
50% stake in the New Zealand operations of Powerco to Queensland State investment arm
QIC.
The deal, announced in November 2008, will see BBI and funds managed by QIC share
control of the asset, subject to foreign ownership consents from New Zealand regulators
and the consent of Powerco's lenders.
"BBI is working to resolve the issues but is not yet in a position to provide
details of any outcomes," said the infrastructure fund, which is due to release its
interim results Wednesday, in a statement.
BBI did not disclose the nature of the issues whilst QIC said that it remained
committed to the deal.
"QIC is actively working with BBI to reach an agreement to complete the
transaction as soon as possible," said Ross Israel, QIC's head of global
infrastructure, in a statement.
Israel confirmed that settlement of the transaction is still expected by the end of
March, with consents relating to BBI's retention of Powerco's gas distribution
business in Tasmania state also required.
BBI has been granted extensions, until March 2009, on the repayment of around A$66
million in mezzanine debt related to its 76% stake in Western Australia rail
infrastructure business WestNet Rail, and on a preexisting commitment to purchase the
remaining 24% of the asset, to allow it to use the proceeds from the Powerco sale
alongside its operating cash flows in satisfaction.
-By Bill Lindsay, Dow Jones Newswires; 61-2-8272-4694; [email protected]
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(END) Dow Jones Newswires
February 23, 2009 23:02 ET (04:02 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.
Tuesday 24 February 2009 15:02:00.000 AEST
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