At BBI’s AGM this week only 2.83% of shareholders voted against the plan, which will see Brookfield also scoop up BBI’s interests in UK ports business PD Ports.
The deal consists of a $625 million share placement to Brookfield Infrastructure, a $625 million fully underwritten and subscribed placement to institutional investors, a $250 million security purchase plan and the issue of $295 million worth of convertible notes to Brookfield for the DBCT and PD Ports assets.
Debt-laden BBI will revert back to its Prime Infrastructure moniker, the name it traded under before July 2005.
BBI chairman David Hamill discussed the company’s troubling debt position at the AGM, revealing it was possibly facing voluntary administration in early 2010 with $300 million of corporate debt due by February.
He also confirmed there was no alternative offer for BBI, despite the recent negotiations with the Royal Bank of Scotland.
At the end of June, BBI had $8.9 billion of total debt, including $1.2 billion of corporate level debt facilities.
DBCT is one of the largest coal export terminals in the world and serves 10 northern Bowen Basin mines.
Last year 83.9 million tonnes of coal were exported from DBCT and the neighbouring Hay Point Coal Terminal, which is wholly owned by BHP Billiton Mitsubishi Alliance.
