Report: Babcock infrastructure could sell stake to Brookfield

Babcock & Brown Infrastructure, the Sydney-based firm, could announce the sale of a stake in the business to Canada’s Brookfield Asset Management according to a report.

Loss-making Babcock & Brown Infrastructure could shortly announce the sale of a stake in the company to Canada’s Brookfield Asset Management, according to a report on Friday.

The Australian Financial Review said Babcock was due to announce the move as part of restructuring plans, adding that the restructuring involves existing debt, the sale of some assets and the injection of fresh equity into others.     
 
The news follows an announcement late last week that the firm that it had requested a halt of its shares as the company considered a potential recapitalisation transaction.

Babcock has already said it will break away from its former manager by bringing its management in-house. Post-internalisation, Babcock & Brown Infrastructure plans to rename itself “Prime Infrastructure Holdings”.

Brookfield, the Toronto-based asset manager,, has a division called Brookfield Infrastructure Partners listed on the New York Stock Exchange.

That firm recently said it was also going to list its shares on the Toronto Stock Exchange having received conditional approval for its limited partnership units on the Toronto Stock Exchange, the largest public equity market in Canada.

BIP chief executive officer Sam Pollock said in the statement that the additional listing will enable the firm “to enhance its investor base by appealing to a wider range of investors in the Canadian market”.

The fund is 50 percent owned by Brookfield Asset Management and its employees and directors.