Babcock & Brown to buy UK port business
(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.
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.
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