Subscribe to RSS feedBBI confirms interim agreement with investor
Babcock & Brown Infrastructure (BBI) has revealed it has entered into an interim agreement with a potential cornerstone investor about a recapitalisation plan.
The shares of the infrastructure investor were halted this week pending an announcement about the discussions.
The two parties "continue to negotiate in good faith the development of a proposed transaction", BBI said in a statement to the Australian Securities Exchange.
"This agreement includes a non-solicitation obligation on BBI, a capped cost reimbursement provision in favour of the potential cornerstone investor and a three month right of first refusal over the sale of certain assets, if BBI chooses to sell those assets."
BBI has been trying to sell several of its assets including its wholly-owned Dalrymple Bay Coal Terminal in Queensland.
The listed infrastructure investor said earlier this year that it had received several expressions of interest for the coal terminal.
BBI last week reported a net loss of $977m for the year ended June 30 following a $44m loss a year earlier.
The company's stock was 5.1% lower this morning, at 7.4c.
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