Sydney-based investment firm Babcock & Brown, the preferred bidder for Alinta Ltd, has denied any working relationship with Tricom Holdings in respect to the offer, despite market speculation to the contrary.
Sydney-based investment firm Babcock & Brown, the preferred bidder for Alinta Ltd, has denied any working relationship with Tricom Holdings in respect to the offer, despite market speculation to the contrary.
Babcock & Brown chief executive Phil Green today said that although the two had worked together in the past, neither Tricom nor Tricom Nominees were holding Alinta shares on its behalf.
"We have no control with respect to any Alinta shares held by Tricom or Tricom Nominees and Babcock & Brown has no ability to direct, nor agreement over, how they intend to vote them on the proposed scheme," he said.
"Babcock & Brown is definitely not an associate of Tricom either generally or (for the purposes of securities legislation) in relation to any Alinta shares held by Tricom or Tricom Nominees in Alinta."
Tricom, also based in Sydney, declared last Monday that it was a substantial shareholder in Alinta, having bought 5.22 per cent of the company in off-market trading.
This, coupled with Tricom's role in the Babcock & Brown takeover of New Zealand electricity and gas utility Powerco, had led to market and media speculation that the two were working to establish a defence from an on-market bid by rivals Macquarie Bank, blocking takeover attempts through the holding of a combined 10 per cent stake.
The full text of the Babcock & Brown announcement is pasted below
International investment and advisory firm Babcock & Brown (ASX:BNB), today reiterated the message that Tricom Holdings (Tricom) has not been acting on its behalf (or on behalf of any of the Babcock & Brown funds involved in the Offer to acquire Alinta) in relation to the recent buying of Alinta Limited (Alinta) shares by Tricom.
This confirmation is made in response to incorrect and unfounded press speculation that Babcock & Brown has been behind the buying by Tricom, which has recently disclosed that it is a substantial shareholder in Alinta.
Babcock & Brown's Chief Executive Phil Green said today "Babcock & Brown has worked with numerous nominee companies and investment banks, including from time to time Tricom and Tricom Nominees, across a range of matters, however neither Tricom or Tricom Nominees are holding any Alinta shares on our behalf.
"We have no control with respect to any Alinta shares held by Tricom or Tricom Nominees and Babcock & Brown has no ability to direct, nor agreement over, how they intend to vote them on the proposed scheme. Babcock & Brown is definitely not an associate of Tricom either generally or (for the purposes of securities legislation) in relation to any Alinta shares held by Tricom or Tricom Nominees in Alinta.
"The merits of the recommended proposal to acquire Alinta by a consortium encompassing Singapore Power International Pte Ltd (SPI), Babcock & Brown and three of Babcock & Brown's managed funds are strong, have limited conditionality and continue to improve as we move closer to the Scheme meeting. Following the strong price appreciation of our managed funds, based on the performance of their existing portfolio of assets, the value of the Offer to Alinta shareholders, is $15.471 based on last nights closing prices or $15.87 inclusive of the value of the franking credits (up to 40¢ per Alinta share) for those Alinta shareholders who can use them. We are confident the recommended offer will be supported by Alinta shareholders as we move closer to a timely completion of the transaction."
