BBI - Babcock & Brown Infrastructure
- Thread starter roland
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Probably the biggest underestimation on this forum.
DB was a *SUBSTANTIAL* seller at 2.4c. A LARGE BUNCH.
To turn around and buy $10M+ (est.) at 8cents... someone has SERIOUSLY done some number crunching and became excited.
That trader must surely realise how bad stuffing up $10M on another "Babcock" would be (esp. one that has already BURNT DB!). He obviously must be very confident... and have giant cohonas...
Or all of the above *AND* know something we don't... but, there are many of us here that would buy $10M of BBI if we could...
Theres a thought skidding around the internet that DB could try and onmarket take-over of BBI (NTA of $2BN++, total equity value of $200M or so)... however, I think there are too many long-term holders for that to be successful. I don't believe DB would throw *THAT* much money into BBI at this stage.
But hey, if DB offered, say, 30cents, I'm imagining that there would be an AWFUL lot of sellers....$780M would give 50%, and considering NTA are probably about $2.5Bn...
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You raise a good point, with DB being a seller at 2.4c to now turn around and buy at 8c something must have changed.
As you mention the company would also be cautious due to the "babock" name and their run of failures.
What interests me though is the position in BEPPA, in the event of a take over of BBI at say 30cents would BEPPA continue until 2012 or would DB be required to pay out the $1 plus interest, or would they offer 30cents for BEPPA as well?
As far as I'm aware, BBI owe me $1.20 30th June 2012, per my contract with them...Doesn't matter who owns BBI... I get my money.
DB could offer to pay 30cents for every BEPPA ($233.4M)... but I sure as crap aren't agreeing to sell mine for 30c!
If DB owned 50% of BBI, surely this would improve their credit rating... which would be a SUBSTANTIAL boost for BBI share price (and in my mind, guarantee BBI survival, and my $1.20 payout)
I doubt DB could force me to sell BEPPA (could offer me $1, and I would agree)... but I'm not sure what would happen if they obtained 90%+ of BEPPA (I doubt they could force me to sell, but I don't know).
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Im sure BB will now the answer re: BEPPA in the event of a take over.
I would imagine that a company would try and buy BEPPA holders out for less than the dollar, but if they couldnt/didnt want to it would continue to run until 2012.
Anyway we dont have to worry about this now because its all rumours. lol, it is however good to see some more posiive news for BBI with DB buying up more shares
I would imagine that a company would try and buy BEPPA holders out for less than the dollar, but if they couldnt/didnt want to it would continue to run until 2012.
Anyway we dont have to worry about this now because its all rumours. lol, it is however good to see some more posiive news for BBI with DB buying up more shares
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I'm not sure if this addresses that particular question, but this is from BBI's website:
ISSUE OF EQUIVALENT SECURITIES TO EPS ON CHANGE OF CONTROL
EVENT
In light of the current uncertainty surrounding the Babcock & Brown Group, the directors
of BBI EPS Limited have resolved that if a Change of Control Event occurs in accordance
with the EPS terms as a result of the Responsible Entity of Babcock & Brown
Infrastructure Trust ceasing to be a member of the Babcock & Brown Group, it is their
current intention to redeem the EPS and issue Equivalent Securities as consideration for
the redemption rather than have EPS redeemed for cash or convert into Babcock &
Brown Infrastructure stapled securities.
Equivalent Securities are defined in the EPS terms as:
“securities issued by the Company or the BBI Group having economically similar
terms to EPS from the perspective of a Holder, and where BBI receives advice
from a reputable investment bank, accounting firm or other professional financial
adviser that the terms of the securities are not materially adversely different from
the terms of EPS from the perspective of a Holder.”
Copies of the EPS terms are available on the website of Babcock & Brown Infrastructure
Group: www.bbinfrastructure.com.
http://www.bbinfrastructure.com/media/387354/bbi eps ltd redemption on change of control.pdf
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there is a break down of all their purchasing in the announcement.
they did pick up one enormous parcel of 42m at one stage... if i'm seeing that correctly
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Could it be that DB are buying BBI script on behalf of clients? This would suggest that DB are not making a corporate play for BBI.
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yes i think so. as per there release:
768,411 shares were :
"in its capacity as investment manager. excersise of voting is subject to any client directions"
and a lot of smaller lots were purchased for various funds under the DB banner.
the buying dates back to january and continues until may 12. so overall they would have achieved an ok average buy price. dont think we can read much into the buying really, other than hope they buy up surplus sparc sales for clients in coming weeks.
Hmm.
holding at 15/01/09 was 11,858,440
holding at 15th May is 127,683,351
purchased 43,113,275 shares on 24/03/2009
purchased 15,330,945 shares on 12/05/2009
purchased 4,830,618 shares on 13/05/2009
purchased 9,340,510 shares on 15/05/2009
And, they haven't sold one single BBI share from 16th jan to the 15th may.
The ASX announcment is up until the 15th May, as such it is CLEARLY not because DB owned any SPARCS.
If 0.75M are due to DB acting as an investment manager... does that mean that about 0.5M are for other reasons... some of these just DB investing? For example, the very last box seems to show DB investing 174,333 BBI shares... but I could just be reading the announcment wrong.
PS: Fairly reliable rumour floating around that someone else has bought 60M BBI in the last month as well...
PPS: Fairly *UNRELIABLE* rumour floating around that a UBS analysts has apparently chucked a buy recommendation onto BBI.
UBS also raised $1.3Bn for B&B, advised on a $500M facility for BBI's acqusition of PD Ports,
And the UBS investment banking division raised A$1.3 billion in equity and equity-linked products for Babcock & Brown....advised on BBI on A$500 million acquisition bridge facility for Babcock and Brown Infrastructures acquisition of PD Ports.... advised BBI on termination of management contract with B&B, is advising BBP on asset sales... so, if true this is massive news. I can't find any information on Google (except on HC) though, which leads me to thinking it isn't true...
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open an account with UBS, throw a couple of grand in it and you have full access to their research division.
Er, sorry. My post earlier was obviously incorrect.
I said
However, from the announcment, 768,411 have a Registered Holder as ANZ Nominees... which is what was pointed out in this thread.
This is immaterial when DB control 127,683,351 shares...
Out of these 127.68M, 126.72M are "in the capacity as stockbroker, stock borrower, and/or in related capacities". All the other stuff (ANZ Nominees, etc) is largely irrelevant since they combined to hold less than 1M in other ways...
However, I am unable to decipher what the above paragraph means... is anyone able to do this?
I said
However, from the announcment, 768,411 have a Registered Holder as ANZ Nominees... which is what was pointed out in this thread.
This is immaterial when DB control 127,683,351 shares...
Out of these 127.68M, 126.72M are "in the capacity as stockbroker, stock borrower, and/or in related capacities". All the other stuff (ANZ Nominees, etc) is largely irrelevant since they combined to hold less than 1M in other ways...
However, I am unable to decipher what the above paragraph means... is anyone able to do this?
Ohhhh thats why his posts on HC are (pretty much) the only ones worth reading...
I have $2,100 of BEPPA bought in at 10c (avg), and dont effectively reallly have loose funds till August to buy more...
I finish Uni July 2012... so, BEPPA maturing June 2012 works out perfectly well for me... and unless I was offered $0.90 + now I wouldn't sell. Even at 90c, at 5% interest for 3 years that only $1.04186... compared to $1.20ish I would get otherwise... or about $315 worse off... but, I guess, the peace of mind is worth $315
.Long story short. I don't hope for low price
BBI being a fairly high price works best for me... that way, if my BEPPA matures to BBI we won't see such immediate downward price pressure. (as opposed to if it convereted 1 BEPPA for 100 BBI, an extra 77,800,000,000 BBI shares being issued and then most being sold immediatly wouldn't be good ). If say, 100,000,000 BBI were issued due to BEPPA, then the immediate selling of them probably wouldn't affect the shareprice as much...
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We have a notice of substantial holding today from Deutsche in BBI. Deutsche now holds 5.37% of issued BBI shares.
I believe this may just spark a bit of interest in BBI today, BEPPA included.
I believe this may just spark a bit of interest in BBI today, BEPPA included.
^^^^ Didn't read the thread
?That news was released on Friday (after market close)...
holding at 15/01/09 was 11,858,440
holding at 15th May is 127,683,351
Being the key footnotes (and I only pasted that to hit 100charcs
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I am unwell today, not really with it. Soz all.
When sick, I watch but do not trade. Too easy to make a sickness-induced decision that will make you sick later on when you realise what you have done.
When sick, I watch but do not trade. Too easy to make a sickness-induced decision that will make you sick later on when you realise what you have done.
Oh, hope you feel better soon mate.
But, in other news... I've heard you can turn a good profit if you trade whilst you are drunk!...
^^^^ Didn't read the thread
That news was released on Friday (after market close)...
The Poor people using the basic Comsec site only got this info this morning.
It demonstrates what a great Broker the basic online Comsec site provides and delays like that could potentially cost the "poor people" big time through it's great service! In the end Comsec is the only winner!
In a purely speculative way, I'm thinking BBI has been undersold and market nerves will still holding it low for a fair time to come!
