Subscribe to RSS feedBBI to retain majority stake in DBCT
Babcock & Brown Infrastructure (BBI) had no plans to sell its 50.1% stake in Dalrymple Bay Coal Terminal (DBCT) in the short term, according to a spokesman for the infrastructure investor.
BBI’s ordinary and preference shareholders this week approved a proposal by Canadian venture capitalist Brookfield Asset Management to take a 49.9% stake in the world’s third biggest coal export terminal as part of a $1.8bn package to rescue debt-laden BBI.
Under a voting agreement, Brookfield had the right divest its entire stake in DBCT at its “specified price” from the fifth anniversary of the agreement.
The two parties agreed that BBI would be given first choice to buy back the stake from Brookfield.
However, if BBI chose not purchase the shares, Brookfield could sell them to a third party.
The BBI spokesman said the company had not ruled out the prospect of increasing capacity at the coal terminal from the current 85m tonnes per year.
BBI told Lloyd's List DCN in July that it was conducting feasibility studies to determine scope for future expansion at the coal terminal following the recent expansion that lifted capacity by about 50%.
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