Brookfield Asset Management Inc (BAM)

[Investorman]

Babcock & Brown to recapitalize in Brookfield plan

TEL AVIV (MarketWatch) -- Babcock & Brown Infrastructure, the Sydney owner and manager of energy-distribution and transportation infrastructure in Australia and internationally, agreed to a recapitalization by Brookfield Asset Management Inc., the Toronto investment firm focused on power and property, the companies said on Thursday.

Under the terms, Brookfield will invest about US$1.1 billion in Babcock & Brown securities. The figure includes $555 million to $635 million in return for a 35% to 40% interest in a restructured Babcock & Brown Infrastructure; and $265 million for the purchase from Babcock & Brown of two interests: 49.9% of Dalrymple Bay Coal Terminal in Queensland, Australia, and 100% of the PD Ports business in northeast UK. And after buying PD Ports, Brookfield said it would repay $160 million of the ports business's debt