Brookfield Asset Management Inc. (NYSE: BAM) (TSX: BAM.A)
(Euronext: BAMA) and Brookfield Infrastructure Partners L.P. (NYSE:
BIP) (TSX: BIP.UN) ("Brookfield Infrastructure"(1) together with
Brookfield Asset Management Inc., "Brookfield") today announced the
completion of the recapitalization of Babcock & Brown
Infrastructure (ASX: BBI) ("BBI"). Concurrently with the closing,
BBI was renamed Prime Infrastructure.
In total, Brookfield invested $1.1 billion in the
recapitalization of BBI. Brookfield's newly acquired portfolio of
infrastructure assets is diversified across asset classes,
geographies and regulatory regimes. As a result of the
recapitalization, Prime Infrastructure has a strong balance sheet.
Its proportional debt leverage decreased from 98% to approximately
68%, and it has over A$400 million of liquidity including a
newly-established three-year A$300 million corporate credit
facility.
Brookfield Infrastructure invested approximately $940 million of
the total Brookfield investment to acquire a 40% interest in Prime
Infrastructure and 60% of two direct investments acquired from BBI.
The first investment is a 100% interest in UK-based PD Ports, a
"landlord" port which is the third-largest by tonnage in the UK.
The second investment is a 49.9% economic interest in
Australia-based Dalrymple Bay Coal Terminal ("DBCT"), the largest
coal export terminal in the world. Brookfield Asset Management and
other co-investors have acquired the remaining 40% interest in the
two direct investments. Brookfield Infrastructure may sell down up
to 10% of its interest in the two direct investments to
co-investors.
With the completion of the transaction, Brookfield
Infrastructure's utility segment will be comprised of premier
assets such as Transelec, Natural Gas Pipeline Company of America,
Powerco, International Energy Group, Ontario Transmission and
Tasmania Gas Network. Its transportation portfolio will be
comprised of high quality businesses such as DBCT, WestNet Rail, PD
Ports and Euroports. Finally, with Longview and Island Timberlands,
the portfolio will also include some of the highest quality
timberlands in North America. Going forward, Brookfield
Infrastructure will be able to grow from a very solid foundation,
with in-place cash flow supported by regulated and contractual
frameworks that will account for over 70% of its net operating
income.
"This is a transformational transaction for Brookfield's
infrastructure platform, enhancing our position as a leading global
infrastructure asset manager and adding approximately US$8 billion
of assets under management," said Sam Pollock, Senior Managing
Partner and CEO of Brookfield's Infrastructure Group. "We now own a
portfolio of premier assets, diversified across our utilities,
transportation and timber sectors. In addition, largely because of
the contractual and regulated nature of their revenues, these
assets will generate resilient cash flow streams with attractive
growth potential due to our ability to invest in our franchises at
attractive returns in support of our customers' growth
initiatives."
Brookfield Asset Management has also agreed to provide
management services for a fee to both Australian Energy
Transmission and Distribution ("AET&D") and Cross Sound Cable
("CSC"), two assets along with their associated indebtedness that
were separated from the assets of the former BBI.
Brookfield Asset Management Inc. (NYSE: BAM) (TSX: BAM.A)
(Euronext: BAMA) is focused on property, renewable power and
infrastructure assets and has over US$90 billion of assets under
management. The company's common shares are listed on the New York
and Toronto stock exchanges under the symbols BAM and BAM.A,
respectively, and on Euronext under the symbol BAMA. For more
information, visit www.brookfield.com.
Brookfield Infrastructure Partners L.P. (NYSE: BIP) (TSX:
BIP.UN), was established by Brookfield Asset Management Inc. to own
and operate certain infrastructure assets on a global basis.
Brookfield Infrastructure operates high quality, long-life assets
that generate stable cash flows, require relatively minimal
maintenance capital expenditures and, by virtue of barriers to
entry and other characteristics, tend to appreciate in value over
time. Its current business consists of the ownership and operation
of premier utilities, transportation and timber assets in North and
South America, Australasia, Europe and China. It also seeks
acquisition opportunities in other infrastructure sectors with
similar attributes. Brookfield Infrastructure's units trade on the
New York and Toronto stock exchanges under the symbols BIP and
BIP.UN, respectively. For more information, please visit Brookfield
Infrastructure's website at www.brookfieldinfrastructure.com.
Prime Infrastructure (ASX: BBI) is a specialist infrastructure
entity which provides investors access to a diversified portfolio
of quality infrastructure assets. Prime Infrastructure's investment
strategy focuses on owning, managing and operating quality
infrastructure assets in Australia and internationally. For further
information please visit the company's website at
www.bbinfrastructure.com
Note: This news release contains forward-looking information
within the meaning of Canadian provincial securities laws and
"forward-looking statements" within the meaning of Section 27A of
the U.S. Securities Act of 1933, as amended, Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, "safe harbour"
provisions of the United States Private Securities Litigation
Reform Act of 1995 and in any applicable Canadian securities
regulations. The words "will", "grow", "expect", "potential",
"stable", "tend", "seeks", derivations thereof and other
expressions that are predictions of or indicate future events,
trends or prospects and which do not relate to historical matters
identify forward-looking statements. Forward-looking statements in
this news release include statements in regards to Brookfield
Infrastructure's intention to seek co-investors in the direct
investments, Brookfield Infrastructure's ability to generate
resilient cash flow streams, the future prospects of the assets
that Brookfield Infrastructure operates and Brookfield
Infrastructure's plans for growth through acquisitions. Although
Brookfield and Brookfield Infrastructure believe that the
anticipated future results, performance or achievements expressed
or implied of such assets by the forward-looking statements and
information are based upon reasonable assumptions and expectations,
the reader should not place undue reliance on forward-looking
statements and information as such statements and information
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements to
differ materially from anticipated future results, performance or
achievement expressed or implied by such forward-looking statements
and information.
Factors that could cause actual results to differ materially
from those contemplated or implied by forward-looking statements
include: economic and financial conditions in the countries in
which Brookfield, Brookfield Infrastructure and Prime
Infrastructure each do business; the behaviour of financial
markets, the fact that success of Brookfield Infrastructure and
Prime Infrastructure is dependent on market demand for an
infrastructure company, the availability of equity and debt
financing, the ability to complete acquisitions in the competitive
infrastructure space and to integrate acquisitions into existing
operations, other risks and factors detailed from time to time in
Brookfield's form 40-F filed with the Securities and Exchange
Commission as well as other documents filed by Brookfield with the
securities regulators in Canada and the United States including
Brookfield's most recent Management's Discussion and Analysis of
Financial Results under the heading "Business Environment and
Risks" and other risks and factors described in the documents filed
by Brookfield Infrastructure with the securities regulators in
Canada and the United States including under "Risk Factors" in the
Partnership's most recent Annual Report on Form 20-F and other
risks and factors that are described therein, and we caution that
the foregoing factors that may affect future results is not
exhaustive.
When relying on our forward-looking statements to make decisions
with respect to Brookfield or Brookfield Infrastructure, investors
and others should carefully consider the foregoing factors and
other uncertainties and potential events. Except as required by
law, neither Brookfield nor Brookfield Infrastructure undertakes
any obligation to publicly update or revise any forward-looking
statements or information, whether written or oral, as a result of
new information, future events or otherwise.
(1) References to "Brookfield Infrastructure" are to Brookfield
Infrastructure Partners L.P., Brookfield Infrastructure L.P. and/or
its subsidiaries as the context requires.
For more information, please visit our web sites at
www.brookfield.com and www.brookfieldinfrastructure.com or contact:
Brookfield Asset Management Investor Relations Katherine Vyse SVP,
Investor Relations and Communications Tel.: (416) 369-8246 Email
Contact Media Relations Denis Couture SVP, Corporate and
International Affairs Tel.: (416) 956-5189 Email Contact Brookfield
Infrastructure Partners L.P. Investor Relations Michael Botha SVP,
Finance Brookfield Asset Management Tel.: (416) 359-7871 Email
Contact Media Relations - Australia Kerrie Muskens Head of
Marketing and Communications Tel.: +61 2 9256 5753 or +61 410
535250 Email Contact
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