Alinta has finalised the composition of payments to its shareholders under its recently approved takeover scheme, with shareholders who wanted cash rather than various Babcock & Brown securities getting nearly all of their payment in cash.
Alinta has finalised the composition of payments to its shareholders under its recently approved takeover scheme, with shareholders who wanted cash rather than various Babcock & Brown securities getting nearly all of their payment in cash.
Babcock offered Alinta shareholders several different options, including an all-cash option for smaller shareholders.
The different options were all worth $15.13 per Alinta share, compared with a value of $16.06 per share when it was recommended by the Alinta board.
A Babcock & Brown statement is pasted below:
CONSIDERATION CHOICES DELIVER ALINTA SHAREHOLDERS DESIRED
OUTCOME AND POSITIVE OUTCOME FOR B&B FUNDS
International investment and advisory firm Babcock & Brown (ASX:BNB) acknowledges the announcement released to the market by Alinta Limited detailing the final composition of each of the consideration alternatives under the Babcock & Brown/Singapore Power International Scheme Proposal, determined on the basis of the elections made
by Alinta shareholders.
Peter Hofbauer Global Head of Infrastructure at Babcock & Brown said, "We are extremely pleased with the outcome of the allocation process. Our strategy of offering Alinta shareholders a range of choices has enabled shareholders to tailor their consideration to their own financial circumstances.
"Those selecting "maximum cash" have received substantially all their consideration in cash in addition to the APA securities that all Alinta shareholders will receive.
"We were very pleased with the significant number of shareholders selecting "maximum securities" implying a strong level of support for the Babcock & Brown Australian listed infrastructure funds. These shareholders will receive
their total consideration in the form of securities including BBI EPS.
"It is also pleasing that some shareholders took the opportunity to obtain capital gains tax rollover relief by selecting maximum BBI EPS.
"The securities that are expected to be sold on behalf of small shareholders who elected "cash out" and shareholders who are ineligible to receive shares is extremely small representing approximately 1.3%, 2.8% and 0.9% of the market capitalisations of Babcock & Brown Infrastructure (BBI), Babcock & Brown Power (BBP) and Babcock & Brown Wind Partners (BBW) respectively. The BBI EPS to be sold represent only 3.5% of the total EPS issued.
Mr Hofbauer concluded "In addition to the positive long term benefits of the transaction to BBI, BBP and BBW we believe that giving Alinta shareholders choice around the form of the consideration they receive has strengthened the
investor base of each of the funds. We look forward to welcoming these new security holders onto the register of our managed funds."
