October 9 - PD Ports is to be bought by a Canadian asset management company as part of an AUD1.5bn-plus recapitalisation by Babcock & Brown Infrastructure (BBI), which has been under pressure to sell assets to reduce its debt.
Under the terms of the recapitalisation, - which is subject to shareholder agreement - Toronto-based Brookfield Asset Management will buy 100 percent of BBI's interest in PD Ports and repay GBP100m on behalf of the Teesport operator.
In local media PD Ports is quoted as saying that it would welcome any deal that secured its long-term future, which will include increasing container capacity and gaining a foothold in the wind-farm market. Group development director Martyn Pellew is reported to have said: "It would be useful and helpful to have a more secure future. Talks about a potential sale of the business has had an unsettling effect on existing customers and prospects for business."
Earlier this year, BBI sold a 40 percent stake in Luxembourg-based Euroports. The proceeds from the recapitalisation will be used to repay BBI's debt and simplify its capital structure and BBI said that it will change its name to Prime Infrastructure.