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BBI - Babcock & Brown Infrastructure

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One thing that I get out of this fiasco is tomorrow I'm going to go buy Brookfield bonds for my aunt's fixed income account. Those guys are survivors.
 
Perhaps RBS are accumulating BEPPA and there will be another twist? Time will tell. The big crossing at 40c was either BAM friendly buying or RBS building a blocking stake for the vote.
Persisentone, you have a PM.
If anyone is over the road, please ask "towie" to email me asap.
peterinsk at yahoo dot com dot au
 
From todays announcemet looks like if any SPARCs convert it will be before EPS and the placements. The prospecus suggests conversion will result in recovery of 2c from $1 face value. Any SPARCs not converted will be paid a distribution rate of 10%. Based on that it seems unlikely that most will convert and even if they do it shouldn't be too bad for BEPPA
 
Paragon1 said:
From todays announcemet looks like if any SPARCs convert it will be before EPS and the placements. The prospecus suggests conversion will result in recovery of 2c from $1 face value.
Click to expand...
The directors have been very creative indeed here in trying to limit the impact of SPARCS conversions on that 16% of the recapitalised entity allocated to BEPPA/SPARCS.

Dot point 3 on pages 12 of the SPARCS conversion update makes for interesting reading in relation to this.

Essentially what they are saying is that the VWAP for conversion of SPARCS will be pre-capital distribution (~$0.04) but as these newly converted shares will not get the capital distribution itself they will be worth next to nothing relative to the face value of the bond.

Is this allowed under corporate law ?
 
http://www.theage.com.au/business/bbi-lobs-fuel-on-the-fire-20091016-gzeb.html

"BBI lobs fuel on the fireSCOTT ROCHFORT
October 16, 2009 - 12:23AM
Babcock & Brown Infrastructure has added fuel to what may be a fiery annual meetings by proposing a 50per cent lift in non-executive directors' remuneration.

The company, which is urging security holders to back a $1.5 billion recapitalisation that will dilute their stake to less than 0.1 per cent, has proposed lifting the remuneration pool of directors from $1million to $1.5 million a year.

In the meeting notice lodged yesterday, BBI argued that the fee pool had not been lifted since 2002. It said a review of data from other companies with a similar market capitalisation in its sector found the fee plan limits to be consistent.

The proposal is likely to inflame security holders whose holdings in the fund will rendered almost worthless by the recapitalisation, under which Canada's Brookfield Infrastructure will emerge a cornerstone investor in BBI. The increase in remuneration is half the $1million stake BBI shareholders would be left with after the recapitalisation.

"It's poor timing and I think it would be considered a slap in the face to existing security holders," said the Australian Shareholders Association's chief executive, Stuart Wilson."
 
is it possible to put a motion of no confidence in the directors of BBI at the next shareholders meeting? its pretty obvious now that they are nothing but a corrupt pack of corporate parasites who are not interested in the interests of us shareholders but rather they are just feathering their own nests while hanging us out to dry! surely if they arent looking after our interests we should be able to kick their mangy a*r*s*e*s out the door? how is it we as shareholders dont get a say on the RBS proposal? maintain the rage, take back OUR company and boot these leeches out!
 

Your options are to enlist enough people to vote against the proposal and see the appointment of an Administrator/Liquidator. Then talk to a litigation funder in respect of the viability of sue-ing the directors for any percieved incompetence, conflict of interest, conduct causing the failure of the business, misleading reports to the market inducing people to invest etc etc etc.
 
we tried that when similar parasites destroyed copperco, the only winners were the lawyers... CUO shareholders got diddly-squat! funny that mac bank was involved in both shareholder bloodbaths (cuo + bbi) yet walked away smelling of roses? my advice... steer clear of anything they have their grubby hands mixed up in!...
 
I'm still curious as to how the directors can price any new BBI shares from SPARCS conversion cum the $0.04 capital distribution and then not pay it.
 
drsmith said:
I'm still curious as to how the directors can price any new BBI shares from SPARCS conversion cum the $0.04 capital distribution and then not pay it.
Click to expand...

Prima facie it does seem illegal but I would imagine no-one will question it. SPARCS are being blackmailed into rolling over for another 12 months. If they elect to convert in November they receive circa 2c in the $1 so BBI are giving them no choice. Take 2c in the dollar next month or wait another 12 months and hopefully we can pay you full face value.
 
If any of the current directors or board members are going to be involved in the recapitilised BBI, I would rather see BBI fold and loose my 4cents per share
 
I Got stuck with BBI shares @$1.95 a share .I cannot see any value in the restructuring and will not put any more dollars into the company whilst those directors remain in control.If there is any hope of getting rid of them i would be all ears
 
this company is up there with centro....

talk about lack of disclosure....in august at their full year results they said that they had received offers for dbct and pd ports and were evaluating them...and THEN said a few weeks back that they had been approached by Brookfield a few months back...

where the hell was the continuous disclosure?

iI bought Beppa, had 600k of them and dumped most at 18-19c...more fool me, after they doubled in price...

this cost me well over 120 grand........

I would be prepared to take legal opinion over this...with a view to suing the company for negligence....

I am banned from over the road....are they making similar noises?????

This is a disgrace of a company, the directors couldn't give a stuff about the shareholders....bring on carnage at the agm for the directors, they deserve all they get
 
bonzo said:
If any of the current directors or board members are going to be involved in the recapitilised BBI, I would rather see BBI fold and loose my 4cents per share
Click to expand...

BBI currently selling at .036. Isn't that strange, considering you will receive a .04 capital return? Is this an opportunity to cash in and make 10% with little or no risk?

Or is everything not cut and dried yet?
 
YELNATS said:
BBI currently selling at .036. Isn't that strange, considering you will receive a .04 capital return? Is this an opportunity to cash in and make 10% with little or no risk?

Or is everything not cut and dried yet?
Click to expand...

Because there is a risk that BBI holders would vote against the proposal.

consider this: You've bought at >$1. a ~4% loss on top of a ~96% loss OR seeing the board suffer.
 
skyQuake said:
consider this: You've bought at >$1. a ~4% loss on top of a ~96% loss OR seeing the board suffer.
Click to expand...
I don't know what percentage of shares would currently be represented by holders in that situation but the market is clearly pricing in a risk of failure.
 
drsmith said:
I don't know what percentage of shares would currently be represented by holders in that situation but the market is clearly pricing in a risk of failure.
Click to expand...

Bronte Capital's chief operating officer, Simon Maher, said yesterday that the present deal was ''highly unattractive'' for EPS shareholders.

EPS shareholders must vote 75 per cent in favour and ordinary shareholders must vote 50 per cent in favour of a $1.8 billion recapitalisation of the debt-laden BBI for it to go ahead. The proposal includes a $625 million injection by Brookfield Asset Management and its $295 million purchase of BBI's prize asset, the Dalrymple Bay Coal Terminal. It also includes a $104 million dividend, or 4c a share, paid to ordinary shareholders.
 
$$Punt$$ said:
EPS shareholders must vote 75 per cent in favour and ordinary shareholders must vote 50 per cent in favour of a $1.8 billion recapitalisation of the debt-laden BBI for it to go ahead.
Click to expand...
No doubt the directors have been keeping a close eye on the registry for both and pressing the numbers on the phone key pad as necessary to try and achieve the above.
 
drsmith said:
No doubt the directors have been keeping a close eye on the registry for both and pressing the numbers on the phone key pad as necessary to try and achieve the above.
Click to expand...

Personally I don't have much confident in the current BBI board of directors. I have sold all BBI shares but still entitled for the recap SPP. I am still not sure whether I should subscribe to the new SPP knowing the exisitng shareholders will getting nothing other than the miserable 4 cents capital return. It would be interesting to see what happens to the BBI share price as we get closer to the closing date.........
 
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