Babcock sells stake in sister company - Breaking News - Business - Breaking News

Babcock and Brown Infrastructure Group (BBI) has sold a large part of its stake in sister company Babcock & Brown Wind Partners Ltd (BBW) as part of restructuring prompted by recent acquisitions.
BBI said it sold 37 per cent of its stake in BBW at $1.61 a share for a total of $48.3 million in a cross trade executed after the market closed on Friday.
The sale is in line with the group's previous announcement that refinancing or sale of assets could take place to reshape its capital structure ahead of its $US2.23 billion ($A3.0 billion) acquisition of NorthWestern Corporation.
BBI said it was now looking at refinancing options for its Dalrymple Bay Coal terminal and elements of its UK gas transmission business.
BBW last week carried out a $118 million capital raising to pay for new wind farm acquisitions in the US and BBI chief executive Steven Boulton said the strength of demand for that raising had created an opportunity for BBI to realise profits.
"We are very pleased that we received the favourable price of $1.61 per security," he said.
BBI retains an 8.9 per cent stake in BBW and Mr Boulton said there were no current plans for a further sell off.
"The investment in BBW has been and remains a very good one for BBI," he said.,
"Whilst we have been happy to realise the gains made on part of that investment, there are no current directions from the board to sell the remaining stake."
At 1634 AEST Monday, BBI had fallen 1.5 cents to $1.485 and BBW was down one cent to $1.60.
© 2006 AAP