BBI - Babcock & Brown Infrastructure

[Blues 234]

My first time on the forum and have enjoyed reading your comments.

I feel awful for BBI holders but I'm sitting here with a bunch of EPS not sure if they are worth more than the 43c eg I saw ~ 60 to 70c somewhere? Does this higher value have any potential to be achieved if the capital raising was voted down?

Noting that >30% of BEPPAs have changed hands over the past week or so I would have thought if the vote was going to get up that the EPS price would increase closer to the trading halt in November from the current 38.5c to closer to 43 - correct?

 

[hardyakka]

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

Hi folks,

Just catching up with things.

I have been catching up on the dirt that went on behind the scenes that is being discussed across the road. Considering I liquidated about 2M BEPPA not long after the announcement in early September I am somewhat a little irritated at PIG. I thought I had missed out on about $200k at current prices it is more like $800k.

One comment I made several months ago when the announcement turnaround was made was that you can bet your bottom dollar they have solid legal advice, that still stands. I have read that BB is initiating an action and all I can do is wish you the best.

BB, read your messages

Cheers

 

[WinnieBlues]

Hi folks,

Just catching up with things.

I have been catching up on the dirt that went on behind the scenes that is being discussed across the road. Considering I liquidated about 2M BEPPA not long after the announcement in early September I am somewhat a little irritated at PIG. I thought I had missed out on about $200k at current prices it is more like $800k.

One comment I made several months ago when the announcement turnaround was made was that you can bet your bottom dollar they have solid legal advice, that still stands. I have read that BB is initiating an action and all I can do is wish you the best.

BB, read your messages

Cheers

Hardyakka, BB/melua/Peter....i am banned from across the road...the lack of disclosure cost me 120k at current prices....i would be interested in taking legal advice as well.....can you please message to to see what action is proposed...

to all ords holders.....liquidate the company....management don't deserve to keep their jobs......

this is one of the asx's worst companies for disclosure and destruction of holder value....they should be all wearing prison jumpsuits imo

 

[$$Punt$$]

Hardyakka, BB/melua/Peter....i am banned from across the road...the lack of disclosure cost me 120k at current prices....i would be interested in taking legal advice as well.....can you please message to to see what action is proposed...

to all ords holders.....liquidate the company....management don't deserve to keep their jobs......

this is one of the asx's worst companies for disclosure and destruction of holder value....they should be all wearing prison jumpsuits imo

BABCOCK & Brown Infrastructure has threatened legal action against dissident exchangeable preference shareholders for damages if incorrect information causes a $1.8 billion recapitalisation to be voted down.

The legal threat was issued after businessday reported Bronte Capital Management's argument that the current offer for exchangeable preference shares of 43 ¢ was well under BBI's June 30 valuation of 70 ¢ for assets attributable to EPS shareholders.

For the complex recapitalisation to succeed, more than 75 per cent of EPS holders and more than 50 per cent of ordinary shareholders must vote in favour of the deal at a meeting on November 16.

The legal threat was made by BBI's lawyers Freehills, warning ''false or misleading statements'' could lead to ''substantial damage for BBI'', and liability for Bronte Capital and its supporters.

BBI's chief financial officer, Jonathan Sellar, said valuations of BBI's Australian Energy Transmission and Distribution (AET&D) business provided by Bronte Capital had contained inaccurate information. ''We're happy to engage in a debate around valuations; we want to make sure the information that is being published is not false or misleading,'' he said.

''I would point out the first legal letter came from them.''

Earlier this week, Bronte Capital sent a legal letter attempting to establish the ranking of BBI EPS debt holders over the AET&D assets.

 

[banska bystrica]

"The legal threat was made by BBI's lawyers Freehills, warning ''false or misleading statements'' could lead to ''substantial damage for BBI'', and liability for Bronte Capital and its supporters."

How's that for the pot calling the kettle black?
"misleading statements"! BBI themselves are very good at that. Read their announcement on Sept 4 and you could drive a truck through the "misleading" statements.

"1041H Misleading or deceptive conduct (civil liability only)

(1) A person must not, in this jurisdiction, engage in conduct, in relation to a financial product or a financial service, that is misleading or deceptive or is likely to mislead or deceive."

BBI wrote:

"It is likely that there will be a requirement for full conversion of EPS and SPARCS in advance of, and in order to facilitate, any equity recapitalisation and that the
ownership interests of BBI ordinary securityholders, and EPS holders and SPARCs holders post-conversion will be significantly diluted by the recapitalisation. The transaction mechanics, including any conversion of hybrid securities and the basis on which it would occur, have not been determined. The value outcomes of the transaction for BBI ordinary security holders, EPS holders and SPARCS holders are not certain and may attribute a value to those securities that is less than face value or recent trading prices"

 

[jono1887]

is any of this gonna affect the 4c payout to BBI holders?? What are the chances of this getting voted down? There really is no benefit for voting against it is there?

 

[Vic]

Im new to this forum and I have been ready about BBI, I also have shares in it should I vote Yes ? and If I don't whats next ?

Thx Vic

 

[Viva_Las_Vegas]

Banksa
I cant imagine how you must feel. You had a large holding in beppa and i believe you vacated it like the rest of us based on that announcement regarind beppa being payed out at bbi sp. (Well thats the way i read it)

A lot of unhappy campers.

I am now banned for 14 days from HC by some nazi called nymph, apparently typing WTF as a thread title is a concealed swear word punishable by 14 days in the sin bin.

Good luck to all of you with BBI, and I well and trully out of it all.

 

[skc]

BBI wrote:

"It is likely that there will be a requirement for full conversion of EPS and SPARCS in advance of, and in order to facilitate, any equity recapitalisation and that the
ownership interests of BBI ordinary securityholders, and EPS holders and SPARCs holders post-conversion will be significantly diluted by the recapitalisation. The transaction mechanics, including any conversion of hybrid securities and the basis on which it would occur, have not been determined. The value outcomes of the transaction for BBI ordinary security holders, EPS holders and SPARCS holders are not certain and may attribute a value to those securities that is less than face value or recent trading prices"

Specifically which part of this announcement is misleading?

The part about less than face value or recent trading price? Most takeover announcements will contain similar wording, like no guarantee that a transaction would occur or that it will come in at a price above recent trading price. It is more a$$ covering than mis-leading.

Or is it something else?

 

[banska bystrica]

"1041H Misleading or deceptive conduct (civil liability only)

(1) A person must not, in this jurisdiction, engage in conduct, in relation to a financial product or a financial service, that is misleading or deceptive or is likely to mislead or deceive."

It is my view that BBI knew full well that under the BAM proposal BEPPA was NEVER going to trade at less than recent trading prices. Therefore, they should have made a distinction between BBI and BEPPA in the Sept 4 announcement. They did not and that conduct was very misleading. The market was comfortable selling BEPPA from 14c down to 6c on that news yet lo and behold, a certain broker started buying heavily from 7c all the way to 19c. A few days later, the BAM proposal is revealed and surprise surprise, the announcement values BEPPA at 43c.

 

[drsmith]

Specifically which part of this announcement is misleading?

The part about less than face value or recent trading price? Most takeover announcements will contain similar wording, like no guarantee that a transaction would occur or that it will come in at a price above recent trading price. It is more a$$ covering than mis-leading.

Or is it something else?

There's no full conversion of SPARCS. They are infact going to extrordinary lengths to discourage conversion of SPARCS prior to the recap.

Richer pickings however might be found comparing asset valuations in the annual report to commentary in subsequent announcements not too long afterwoods.

 

[mark_au]

Banksa
I cant imagine how you must feel. You had a large holding in beppa and i believe you vacated it like the rest of us based on that announcement regarind beppa being payed out at bbi sp. (Well thats the way i read it)

A lot of unhappy campers.

I am now banned for 14 days from HC by some nazi called nymph, apparently typing WTF as a thread title is a concealed swear word punishable by 14 days in the sin bin.

Good luck to all of you with BBI, and I well and trully out of it all.

LOL thats sooo lame, I recently bought some WTF, i still chuckle at the asx code, but hey you should be banned as its a legit code.. those guys over there are morons

 

[WinnieBlues]

"The legal threat was made by BBI's lawyers Freehills, warning ''false or misleading statements'' could lead to ''substantial damage for BBI'', and liability for Bronte Capital and its supporters."

How's that for the pot calling the kettle black?
"misleading statements"! BBI themselves are very good at that. Read their announcement on Sept 4 and you could drive a truck through the "misleading" statements.

"1041H Misleading or deceptive conduct (civil liability only)

(1) A person must not, in this jurisdiction, engage in conduct, in relation to a financial product or a financial service, that is misleading or deceptive or is likely to mislead or deceive."

BBI wrote:

"It is likely that there will be a requirement for full conversion of EPS and SPARCS in advance of, and in order to facilitate, any equity recapitalisation and that the
ownership interests of BBI ordinary securityholders, and EPS holders and SPARCs holders post-conversion will be significantly diluted by the recapitalisation. The transaction mechanics, including any conversion of hybrid securities and the basis on which it would occur, have not been determined. The value outcomes of the transaction for BBI ordinary security holders, EPS holders and SPARCS holders are not certain and may attribute a value to those securities that is less than face value or recent trading prices"

BB/Melua, u must be furious mate....i am down about 120 thousand on this

From what i recall, u owned 4 million beppa's???

I owned 600k beppa, aver price 7 odd cents, sold out at 19c.....

I am FURIOUS with beppa management.......no disclosure, they are only in it to save their jobs...

I am permanently banned across the rd....damn monkey

Are others talking about taking civil action against the directors???

this company is a joke

 

[Paragon1]

EPS holders will now get the proceeds of sale of AETD assets (if any) plus the 300m+ under the original deal. Sounds like a sweet deal to me!

 

[w534220]

The reality is that if this deal is voted down , the banks will roll over their loans to BBI. The banks obviously threatened BBI that they wouldn't renew the loans in order to scare BBI to go and raise equity. and BBI have said that they couldn't apply for a debt moratorium until and unless this recap deal is voted down. There is no good reason for the banks to pull the plug on a business that is not breaching any covenants and is paying its interest.

all shareholders and EPS holders are better off maintaining their exposure to the upside for this business by voting against this ridiculous recap deal.

 

[w534220]

it is highly irresponsible of the directors to suggest that if the deal is rejected that everyone will get zero. if it were true then why would Brookfield do this deal? they could instead allow BBI to collapse and buy the pieces more cheaply in the fire-sale...

 

[roland]

I for one voted against the recap and against re-election of directors, I felt it was worth my 0.04 versus zero to voice my disgust.

 

[Paragon1]

The reality is that if this deal is voted down , the banks will roll over their loans to BBI. The banks obviously threatened BBI that they wouldn't renew the loans in order to scare BBI to go and raise equity. and BBI have said that they couldn't apply for a debt moratorium until and unless this recap deal is voted down. There is no good reason for the banks to pull the plug on a business that is not breaching any covenants and is paying its interest.

all shareholders and EPS holders are better off maintaining their exposure to the upside for this business by voting against this ridiculous recap deal.

This deal is incredibly an generous one for EPS holders. There is/was a real risk of annihilation without the recap. The value locked in the business will only be available if BBI is a going concern. I still believe there is upside for EPS holders as it is not unimaginable for us to recieve up to 50c/55c in cash and shares plus a free option on the AETD assets which the indepandant expert has valued at between 6c and 20c in his report. It would be rediculous to vote this down

There may be a reason for BBI holders to vote this down out of sheer disgust with management who I agree should be rebuked for the destruction in value and not seen as 'saviours'. However as an investor I am more interested in money than taking a stand and would take the 4c and run. Then maybe there's some money to be made later as EPS holders sell out after receiving their shares and cash and free option in the bag?

 

[Blues 234]

Paragon1....why do you believe it is not unimaginable for EPS to recieve up to 50c/55c in cash and shares plus a free option on the AETD assets?

holder BEPPA

 

[nulla nulla]

They rang us, seeking a "yes" vote for the proposal. Given what we have lost from the original entry price, I laughed at them.
Why would I vote for a proposal that totally wipes out any prospect of the slightest chance of recouping even the smallest percentage of my losses? Why would I vote for a proposal that effectively transfers all the non toxic assets to the cornerstone investor at an incredible discount to fair market value? Why would I vote for a proposal that includes a pay rise for the incompetent directors that dragged the company down? And if by some chance they deluded enough people to vote the proposal through, why would I invest in the spp and give the same incompetent directors/managers the chance to stuff it up again while drawing their ridiculous sallaries?
I can't type the expletive I used to tell them where to go.