(12 December 2005 – UK) Babcock & Brown Infrastructure Group is continuing its Macquarie-esque approach to snapping up offshore infrastructure assets with the Australian investment bank set to buy UK port business PD Ports for A$805 million.This follows Babcock & Brown Capital’s purchase of a 10.8 percent stake in Irish telco Eircom for A$350 million in October, which will pay management fees of one percent per annum to its associate, Babcock & Brown.
Babcock said the acquisition of PD Ports was expected to be “cash flow accretive” immediately.
“PD Ports is well located in a growth area of Northern England where the outlook for the business is favourable,” Babcock said.
The PD Ports board has unanimously recommended its shareholders accept the offer of 148.5 pence a share.
The deal is expected to be completed by February 2006.