This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

BBI - Babcock & Brown Infrastructure

Jump to new
Well, i sold half my bbi shares today and bought the same number of beppa today for a premium of .5 of a cent. Seemed like a good move to me. what do you all think?
 
With the benefit of hindsight, you probably should have kept your BBI, and bought BEPPA. I too sold today, I had a "feeling" something was up but no specifics were available apart from interpreting volumes and demand today, which is something I was not confident in.
For example last week HFA stock which I had purchased at 15cents was down at approx 6 cents, one announcement about refinancing set them up by 100%, now I would never have guessed it would go up by THAT much.
I guess that's why I am kicking myself now, thinking something similar would happen tomorrow. If only I held onto my BBI at 5.1 cents
On a positive I held my BEPPA's.
I will be looking to accumulate BBI tomorrow.....
 
Last time they surged off a low it went to $0.15 then retraced when BNB didn't fall over. This time BNB has fallen over and there is rumoured asset sales/gearing reductions in the pipeline. What are the prospects it will go past $0.15?
 
Curious as to your thoughts. I can see no other reason for the jump in SP for bbi and bebba other than the announcent re Macquarie. In which case there was clearly insider trading. The appointment of Macquarie in itself is not sufficient as this would imply some difficulty in achieving a good sale. So is there some more information re what Macquarie might be doing or re the progress of negotiations. In any case clearly a well priced sale of these assets is what is required for a long overdue rerating of these stocks. I bought most of my BBI at under 3c apart from the handbrake of a small parcel bought at about a dollar. I had previously traded this stock when it was over 1.50 with success. It is exciting to hold a larger quantity. The Beppa bet is possibly a huge winner if the company survives. Really in a fair world it should. Let's all hope so.
 
I am confident today's action was about something other than Macquarie being appointed. Please read my previous posts.
 
banska bystrica said:
I am confident today's action was about something other than Macquarie being appointed. Please read my previous posts.
Click to expand...

Folks,

There seems to be a lot of concern over the days price movement. Whilst its nice I have to ask the question "Are daily price movements that relevant to the long term view?"

Personally I think not, except to provide buying opportunities, and even then an order can be placed and simply left on-market at an acceptable buy price.

Regarding the price movement the announcement said it all:
"As previously announced, the price discovery process for DBCT recently concluded and interest was shown at both the minority and 100% level."

That to me indicates that there are likely to be several bids for whole and part of the asset. I have no problems paying a fee of $10s of millions if it adds $100s of millions to the price.

What I do know from today is that it is unlikely my existing open orders will be filled

Being a risk averse wuss I hold a reasonable number of BEPPA.

Cheers

Dargie's death spiral rools ok!!
 
Just being curious, why didn't BBI buy back the BEPPA now with such a huge discount on face value, to eliminate the significant costs (for redemption and accumulated intersts) in 3 years?

I am new to this forum, holding some BEPPA shares.

Cheers.

snowfree
 

BBI have a sweep facility in place whereby all free cash (except for a $50M float) is swept to the banks to reduce corporate debt. Therefore they are prohibited at this point in time in engaging in any form of BEPPA buyback.
 

It's anyone's guess what the share price would do if the above happened over the next few months because we are dealing with something (the Stock Market and all the fear and panic etc surrounding it) that is completely and utterly irrational as recent events have shown. However if I was to put my hat in the ring I would suggest the share price would not so much rise to 20cents a unit but by multiples of 20 cents to 60c or more. Before any of you say that is not going to happen who on earth would have thought this stock would be trading as low as it has been recently and as low as it continues to trade just before the stock fell off the face of the earth as it did last year and so far this year? The answer is no-one. Given a 100% sale of DBCT and 100% of PD Ports and everything else mentioned above there is every chance of a price of 60c at least and quite possibly more if world markets continue their recent upswing as the light at the end of the tunnel becomes brighter and brighter. I think that a price range of 60c to $1 in the second half of the year is not as fanciful as it might have seemed only a short time ago, but then again I am making the most dangerous of assumptions, that people will act rationally in a world full of irrational people, so I could be way off. It is just as well that I am the longest of long-term investors!
 
Last time they surged off a low it went to $0.15 then retraced when BNB didn't fall over. This time BNB has fallen over and there is rumoured asset sales/gearing reductions in the pipeline. What are the prospects it will go past $0.15?
Click to expand...

I would think that the prospects of BBI surpassing $0.15 would be very good, but it'll take a while without announcements of sales, internalisation of management, and the name change just to name three events that would trigger sharp rises (genuine sharp price rises that is) in the share price.
 

Great post. It would be great if the price was in that range, personally my time horizon is longer but if it does get there I will send you a few slabs

Cheers
 
Great post. It would be great if the price was in that range, personally my time horizon is longer but if it does get there I will send you a few slabs
Click to expand...

Thanks. The reference to a few slabs sounds great and brought a smile to my face as I haven't heard such terminology for the past year and a half since I left Australia. I am also a long-term investor, and in my case I have no intention of ever selling BBI or any of the other investments I hold in my lifetime, if I can help it, so price isn't such an issue for me either, just as long as BBI survives and remains listed!

The exception to the rule of not selling shares in my case is not to buy and sell the same stock, but to rather sell out of one stock even at a loss in order to buy units in another stock that I deem to be of a higher quality with a better long-term outlook that has fallen further in value so you end up with more units in the stocks you buy even if you sell out of other stocks at a loss. I hope that makes sense to everyone reading.

I don't think there is any value in buying and selling the same stocks eg. buying BBI one minute only to sell the next and then buy them back again, but that's just me and each to their own I guess.
 

I don't know about the insider trading aspect. I think it is more likely a market reaction to the confirmation that professional outside advisors have been formaly engaged to facilitate the sale of specific assets in Europe and Australia. This process would enhance the likelihood of the maximum value being extracted for any resulting assets sales (in full or part) which in turn would have the flow on effect of:
1. Reducing debt;
2. Reducing gearing; and
3. Reducing the amount of finance that will need to be replaced in the forthcomming 12 months.
All the above would enhance their prospect of refinancing as and when necessary without having to pay a premium. All they need to do now is cut the umbilical cord to the BNB carcass and the price should go well past the most recent high of $0.15. We live in hope.
 
dougit said:
Curious as to your thoughts. I can see no other reason for the jump in SP for bbi and bebba other than the announcment re Macquarie. In which case there was clearly insider trading.
Click to expand...

The Macquarie appointment was detailed in the Financial Review yesterday before the commencement of trading so it would not be insider trading on that issue.

The buying yesterday (in my opinion only) was about cutting the BNB chord RE: management agreements. Why would it be this? Well, process of elimination. It would not be about asset sales as it is too early for sales unless of course it is a further sale of Euroports but I doubt it. PD Ports and DBCT are some way off yet. Therefore, what else could it be? Look at the previous announcements regarding internalization of management and you will see that the time frame for that fits in right now. They have been working on this issue for some time.
I reckon we will see an announcement on this in the next couple of weeks and a name change is then on the cards. I think it highly unlikely we will see "Babcock and Brown Infrastructure" listed on the ASX for much longer. Perhaps the old name "Prime Infrastructure" will be resurrected or something else?
 

Announced on Feb 9:

"The Independent Directors of BBI have been working through the implications of terminating the various management and advisory arrangements with BNB and anticipate progressing discussions with BNB in relation to the full internalisation of these arrangements over the coming weeks."

Further, this was announced on March 13.

"BBI confirms that its proposal to internalise management and separate from Babcock & Brown (as announced to the ASX on 9 February 2009) is continuing and further details are expected to be announced as soon as possible."
 
I have mucked up my timing on this a bit, I did some research for my Boss who is a long term holder (he bought ages ago) and was looking to get in myself, however I didnt and now I am wondering if we likely to see a dip in the share price as short term traders take profits over the next couple of days
 

You may well get your dip this morning. The response to the speeding ticket may disappoint a few of yesterday's punters:


 
Well, you are betting on BBI to survive, hence BEPPA will go to 100, does it really matter whether you get in at 8c, or 4c? It's going to be a huge win anyway, if you win.
 
I would be interested to know anyones thoughts on the various put and call options over the european ports division. Does anyone feel BBI could be adversely affected if another party exercises an option forcing BBI to purchase the remaining share?
 
investorpaul said:
I would be interested to know anyones thoughts on the various put and call options over the european ports division. Does anyone feel BBI could be adversely affected if another party exercises an option forcing BBI to purchase the remaining share?
Click to expand...

The only assets that could trigger a put option are Manuport, Westerlund and Seehafen Rostock.

BBI has a call option over the remaining 49% interest in Water Container Transport. The call option is exercisable on the earlier of 1 January 2009 to 30 June 2009 or if BBI undergoes a capital reorganisation. The call option’s exercise price is calculated at financial close, based on the capital structure employed by the Minority Investors.

BBI has a call option over the remaining 49% interest in Tarragona Port Services. The call option is exercisable on the earlier of 1 January 2009 to 30 June 2009 or if BBI undergoes a capital reorganization. The call option’s exercise price is calculated at financial close, based on the capital structure employed by the Minority Investors.

BBI and its Minority Investors entered into a put option and call option for Manuport and Westerlund. The put option gives each of the Minority Investors the right, but not the obligation to sell all or part of its shares to Euroports. The put option can be exercised between 18 months and 10 years after the date of signing the Shareholders’ Agreement. The put option’s exercise price is calculated at the time the put is exercised, based on a put pro-rata equity value less the put pro-rata Non Share Equity Interest (NSEI ) value. The call option gives Euroports the right, but not the obligation to purchase all the Minority Investors’ shares at the time of the exercise of the right. The call option may be exercised after 18 months from the date the Shareholders’ Agreement was signed or if there is a change of control within the Minority Investors. The call option price shall be calculated as the higher of the market value before deduction of the call pro-rata NSEI value and the call pro-rata equity value of the shares owned by the Minority Investors less the call pro-rata NSEI value.

On 22 November 2007, BBI, purchased 50% of Seehafen Rostock Umschlagsgesellschaft GmbH (SHRU ). The vendor retained the remaining 50% of the Company. On the same date, the two parties entered into a “Put and Call Option Agreement”. The put options enable the vendor to require BBI to purchase all of the put option shares on the terms stated in the agreement, whilst the call options requires the vendor to allow BBI to purchase all of the call option shares on the terms as stated in the agreement.

Without being privy to the actual contracts, it is difficult to answer your question. In any case, I don't think the amounts would be material. The big picture is selling DBCT. That is the catalyst for a major re-rating of BBI between now and June 30.
 
You must log in or register to reply here.

Similar threads

January 2025 DDD
5 6 7
Replies
126
Views
8K
ducati916
November 2024 DDD
2 3
Replies
53
Views
5K
ducati916
April 2024 DDD
3 4 5
Replies
98
Views
9K
ducati916
3
Future of $100,000 overland tourer Aussie lifestyle and the EV era
2
Replies
21
Views
2K
qldfrog
Ozempic: Magic Pill or Devils Bargain?
Replies
10
Views
2K
sptrawler
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...