12/01/2009 - 08:58

BBP sells Alinta EATM to pay down debt

12/01/2009 - 08:58

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Babcock & Brown Power has signed an agreement to sell the assets of Alinta EATM Pty Ltd to Aurora Energy in a bid to pay down its debt.

Babcock & Brown Power has signed an agreement to sell the assets of Alinta EATM Pty Ltd to Aurora Energy in a bid to pay down its debt.

BBP expects to realise proceeds of about $15 million from the sale of Alinta EATM, with the transaction expected to be completed during the first quarter of calendar 2009.

Alinta EATM supplies gas to a range of wholesale energy market participants on the eastern seaboard of Australia.

Last month, BBP said it was reviewing some non-binding bids to buy its business amid an ongoing company review of its capital structure.

BBP has been selling assets to retire debt and has previously flagged the divestment of the Kwinana and Neerabup power stations in Western Australia.

It said it expects to complete the sale of the power stations this quarter once the remaining conditions for the sale have been satisified.

In November, BBP announced that the infrastructure arm of ANZ had made a $130 million offer to buy BBP's interests in stations, however joint owner ERM Power had first right of refusal in the sale.

ERM has stayed quiet on the sale with a spokesperson neither confirming or denying whether the company had bought BBP's interest.

BBP said today that the partial sale of the interests in the Kwinana power station and internal funds have been used to repay $71 million of the $118 million facility to date. The remaining $47 million is expected to be repaid from internal funds and proceeds received from the completion of the asset sales.

 

 

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