Lend Lease to acquire BBC
Lend Lease Corporation (LLC) has announced it will acquire a 41 per cent stake in, and become the manager of, aged care company Babcock & Brown Communities (BBC) Group.
The total cash investment will be $236.8 million, which will be funded through existing cash reserves.
LLC has also entered into a separate agreement to purchase the 12.5 per cent stake currently held by Babcock & Brown, which is the current manager of BBC.
LLC purchased a 7.22 per cent strategic stake in BBC in mid 2008 to gain exposure to the growing retirement sector in Australia.
LLC managing director and chief executive Greg Clarke said the retirement industry has a number of strategic benefits for the group.
“This transaction provides us with significant exposure to the sector through becoming the manager of, and major investor in, Australia’s leading pure-play operator.”
Babcock & Brown chief executive officer Michael Larkin said the group has welcomed the recapitalisation of BBC.
“We are extremely pleased that the board of BBC has been able to negotiate the announced restructure with LLC in a relatively short period of time,” he said.
“Consistent with our strategy, the sale of our holding and management rights will tighten the focus of the group’s activities.”
Prime Trust recently proposed an offer for BBC that was not supported by the board, with its shareholders advised to take no action on the offer.
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