Subscribe to RSS feedFIRB approves Dalrymple Bay stake purchase
The Australian Foreign Investment Review Board has approved Brookfield Asset Management's proposal to acquire half of the Dalrymple Bay Coal Terminal (DBCT) from debt-laden Babcock & Brown Infrastructure (BBI).
Dalrymple Bay Coal Terminal (Photo: Southern Cross Maritime)
"FIRB has confirmed that it has no objections to Brookfield's cornerstone investment in BBI and the asset arrangements with Brookfield," BBI said in a statement to the Australian Securities Exchange.
The Canadian infrastructure investor announced on October 8 that it would pay $295m for the 49.9% interest in the world's third-largest coal export facility as part of a complex $1.1bn recapitalisation package.
DBCT boosted its capacity in July by about 50% to 85m tonnes a year and is currently looking to increase this further.
The rescue package would reduce BBI's $2.7bn in proportionate debt maturing in 2010 and 2011, including the $300m of corporate debt maturing next year.
Brookfield will purchase between $625m-$713m of stapled securities for a 35%-40% interest in the restructured BBI plus investment in Dalrymple Bay.
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