B&B shores up position
Infrastructure group Babcock and Brown has moved to bolster its position in the face of a number of unsolicited offers by undertaking a capital management review and looking for co-investors in its core assets.
At the same time, the company told the Australian Securities Exchange today that it had started a formal price discovery process aimed at identifying partners to co-invest in up to 50 per cent of its assets — WestNet Rail and Power Co.
It said it would be applying the proceeds of any completed transaction towards reducing corporate gearing and towards providing capacity for the company to fund future investment opportunities.
The company said it had been continuing to evaluate a range of options to unlock value in its existing investments and considering initiatives to assist in closing the gap between the underlying value of the business and the current market price.
AUTHOR
Mike Taylor
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