BNB babcock & brown limited

gorilla kicks leaky bucket and buys at 24

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    She's on the nose.

    VWAP approx 26.5 30 minutes before close forecasting 25 plus close with luck to mirror most other days.

    Sydney - Wednesday - November 19: (RWE Aust Business News) -
    Babcock & Brown (ASX:BNB) has progressed with its strategic review and,
    in light of global market conditions, has decided to narrow and simplify
    its focus through a restructure to become a specialist infrastructure
    investment business.
    Restructure of the business will create a segregated
    infrastructure business within Babcock & Brown and is expected to be
    largely implemented by mid 2009.
    There is no set timetable for business and asset sales and
    these will be available for sale and managed with a view to maximising
    value, either as cross-border platforms or as separate geographic or
    sector portfolios.
    Babcock & Brown is committed to honouring its obligations as a
    manager of third party capital at all times.
    Chairman Elizabeth Nosworthy said this was the best way
    to reduce debt levels and begin to restore shareholder value.
    "We intend to repay debt through the orderly sale of the non core
    businesses and assets andreduce our operating costs to create a
    sustainable base which matches the focus of our ongoing infrastructure
    investment business," she said.
    "The restructure plan neither depends on nor precludes
    discussions with potential strategic investors.
    "However, it is still too early to say whether any such
    discussions will lead to a transaction."
    CEO Michael Larkin said the real estate and operating leasing
    businesses have quality platforms and assets in their own right and will
    benefit from orderly sale to investors or existing operators focused on
    those sectors.
    The restructure plan involves separating the Babcock & Brown
    business into two groups comprising the specialist infrastructure
    investment business - incorporating funds management operations and
    stakes in core listed and unlisted infrastructure funds as well as the
    PPP, wind, thermal and solar projects development pipeline - and the
    remaining businesses and assets - incorporating real estate, operating
    leasing, remaining corporate and structured finance operations and
    assets, and investments or loans to B&B Power and other infrastructure
    assets currently available for sale.
    These changes are expected to lead to reduction from
    approximately 1,600 people at 30th June 2008 to approximately 600 people
    during 2010.
    This will be achieved progressively through redundancies and
    employee transfers as assets and businesses are sold.
    A reduction in operating costs (excluding remuneration) of more
    than 50pc or in excess of $150m by end 2010 is envisaged.
    As part of the ongoing consultation with its banking syndicate,
    Babcock & Brown has advised the bank representatives of the restructure
    plan, which is expected to repay more than 50p ofs current $3.1bn
    corporate debt facilities by 2011.
    Babcock & Brown has also commenced discussions with its banks
    about a proposed restructure of the facilities.
    The amendments being sought include changes to the financial
    covenants in existing corporate facilities, which Babcock & Brown will
    find difficult to meet in the near term given the continuing and
    substantial deterioration in market conditions.
    Discussions with the banks regarding these changes are ongoing
    and may not be concluded before the end of December this year.
 
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