International Public Partnerships Regulatory News (INPP)

27 Nov 2007 07:01

Babcock&Brown Public Ptnrships Ltd27 November 2007 Press Release Babcock & Brown Public Partnerships Agrees to Acquire a Portfolio of Assets Babcock & Brown Public Partnerships Limited (LSE: BBPP) ('BBPP' or the'Company'), the internationally focused public infrastructure fund, todayannounced that, subject to shareholder approval, its subsidiaries will acquire aportfolio of five investments (the "Projects") from subsidiaries of Babcock &Brown (ASX: BNB) for an aggregate maximum price of approximately £49.8 million(including deferred equity contribution). These acquisitions will take the number of investments in the BBPP portfolio to30 and increase the geographical diversity of the portfolio. These acquisitionswill also result in the Company having substantially invested the cash raised atthe time of its IPO within the timeframe previously indicated to investors. The interests in the Projects are as follows: • 100% of the equity and (when issued) subordinated debt interests in the Dublin Criminal Courts project, an Irish PPP project to design, build, operate and maintain the new central criminal courts complex in Dublin • 95% of the equity and 100% of the subordinated debt interests in the Amiens Hospital project, a French PPP project to design, build, finance and maintain a medical equipment sterilisation facility for the benefit of hospitals in the north of France led by the Centre Hospitalier Universitaire d'Amiens • 25% of the equity and subordinated debt interests in the New South Wales Schools project, an Australian PPP project to design, construct, finance, operate and maintain ten new schools for the New South Wales Department of Education and Training • 100% of the equity and any subordinated debt interests in the Maesteg School project, a PPP Project in Wales for the construction, maintenance and financing of a new build secondary school in Maesteg in South Wales; and, • 37.5% of the equity and subordinated debt interests in the Diabolo project, a Belgian PPP project to design, build, finance and maintain an upgrade to the rail links between the existing Brussels Airport railway station and the Belgian rail network. The aggregate consideration payable includes an amount equal to the amount thatthe relevant Seller is obliged to contribute by way of deferred equity in theAmiens Hospital Project, the Dublin Criminal Courts Project and the DiaboloProject, respectively. For the purposes of the Listing Rules, the aggregatevalue of the gross assets being acquired amounts to approximately £84.2 million.All five projects are currently under construction and will become operationalbetween 2008 and 2012. On acquisition of these assets, the BBPP portfolio willbe 64% operational (cash generating) and 36% under construction. Keith Dorrian, Chairman of the Board of Directors of BBPP, said, "We are pleasedto be acquiring these high quality assets that add further geographicaldiversity our portfolio. These acquisitions highlight the benefits of BBPP'srelationship with Babcock & Brown as well as BBPP's ability to capitalise on thegrowth and internationalisation of PPP style initiatives. "The Company will finance the acquisitions from cash available for investmentraised at the time of the IPO which, as expected, is now substantially investedprior to the end of 2007." Giles Frost, on behalf of Babcock & Brown Investment Management Limited, theInvestment Adviser to the Company said, "Public infrastructure investment is agrowth sector in many countries. This transaction confirms that public privatepartnerships (PPPs) are a worldwide business and, more importantly, that theCompany continues to have the ability to access high quality investmentopportunities internationally." The Company and/or its subsidiaries have entered into various conditionalacquisition agreements with Babcock & Brown Investment Holdings Pty Ltd, Babcock& Brown Sarl, Babcock & Brown Schools 2 Investment Pty Limited and Babcock &Brown European Investment Sarl (together, the "Sellers") to acquire theinterests in the projects described above.For the purposes of the Listing Rules, each of the Sellers is a related party ofthe Company by virtue of each of them being an associate of Babcock & BrownLimited, the ultimate parent company of Babcock & Brown Investment ManagementLimited, which is the investment adviser to the Company. Consequently, theacquisitions are related party transactions under the Listing Rules andcompletion of the acquisitions is subject to the approval of the Company'sShareholders. A notice has today been sent to shareholders convening an Extraordinary GeneralMeeting of the Company at 10.30 a.m. on 14 December 2007 to approve theResolutions. The extraordinary General Meeting will be held at the offices ofHeritage International Fund Managers Limited, Polygon Hall, PO Box 225, LeMarchant Street, St Peter Port, Guernsey GY1 4HY. The Directors are recommendingBBPP shareholders to vote in favour of the resolutions at the ExtraordinaryGeneral Meeting. A copy of the circular seeking shareholder approval is available to the publicfor inspection at the offices of Lovells LLP, Atlantic House, Holborn Viaduct,London EC1A 2FG and at the Document Viewing Facility, 25 The North Colonnade,Canary Wharf, London E14 5HS until 14 December 2007. For further information, please contact: Babcock & Brown: +44 (0)20 7203 7300 Investors - Bianca FrancisMedia - Anthony Kennaway Notes to Editors About Babcock & Brown Public Partnerships Limited: Babcock & Brown Public Partnerships Limited is a Guernsey incorporated, LondonStock Exchange listed company. The Company offers shareholders an exposure toinvestment in infrastructure assets, particularly those with a public or socialcharacter such as those developed under public bodies under private financeinitiative or public private partnership procurements. The Company floated on the main market of the London Stock Exchange on 9November 2006 and on 16 November 2007 had a market capitalisation of £321.8million. This information is provided by RNS The company news service from the London Stock Exchange