Babcock and Brown Power has finalised the sale of its 70 per cent interest in the NewGen Kwinana power station, with details of the settlement pending performance of the station in the second half of the financial year.
A company related to ERM Power, which already owned the balance of the power station, paid $50 million today.
There is also a possible further $13.2 million deferred payment, which will be made at the end of 2009 depending on the performance of Kwinana until June 30.
BBP used the proceeds to fully pay off its debt facility.
Full announcement below
Babcock & Brown Power (ASX:BBP) today announces financial close of the sale of its remaining interest in the Kwinana Power Station to an entity related to ERM Power Pty Limited.
Proceeds of $50 million have been received today and an amount of up to $13.2 million has been deferred until the third quarter of 2009. The amount of the deferred payment is subject to the performance of Kwinana through to 30 June 2009.
The proceeds from sale received today have been used to fully repay the BBPH1 debt facility.
Ross Rolfe, BBP CEO said "We are pleased to announce financial close on the sale of Kwinana, which has enabled full repayment of the BBPH debt facility. BBP continues to make progress with the wider sales process and will provide an update to securityholders in the fourth quarter of FY2009."
