Babcock & Brown Infrastructure mulls recapitalisation

Shares of the Sydney-listed infrastructure investor have halted trading while the firm considers ‘a possible arrangement with a potential cornerstone investor’.

Babcock & Brown Infrastructure has requested a halt of its shares as the company considers a potential recapitalisation transaction.

In a statement to the Australian Securities Exchange today, the firm said it is requesting the suspension while it considers “a possible arrangement with a potential cornerstone investor to work towards a recapitalisation transaction”.

Babcock & Brown Infrastructure said it expects to make an announcement regarding the transaction by this Friday, 4 September.

The news comes less than a week after the firm disclosed plans to sever ties with its former manager, Australian financier Babcock & Brown, by bringing its management in-house. Post-internalisation, Babcock & Brown Infrastructure plans to rename itself “Prime Infrastructure Holdings”.

Babcock & Brown Infrastructure made a loss of almost A$1 billion (€581 million; $827 million) for its latest financial year ending June 30, 2009. The firm made a net loss for the year of A$977 million, compared to a loss of A$44.4 million the previous year. Its revenue rose 16.8 percent to $1.41 billion.