Brookfield in $1.1B coal infrastructure deal
Buys 40% stake from struggling company
Toronto-based Brookfield Asset Management Inc. is part of a $1.1-billion US deal to buy a half interest in a coal terminal in Australia and a port facility in northeast England, the company announced Thursday.
Brookfield and Brookfield Infrastructure Partners said Thursday it will own 40 per cent of Babcock & Brown Infrastructure, which is focused on the transport, energy, infrastructure and utilities sectors.
Sydney-based Babcock & Brown has been struggling under an $8-billion debt burden and seeking buyers for the assets for a year and a half.
The deal gives Brookfield and its partners a 40 per cent stake in Babcock & Brown Infrastructure. The deal "will add approximately $8 billion US of assets under management to Brookfield's infrastructure platform and expand our presence in the important and growing transportation and energy infrastructure sectors," Sam Pollock, CEO of Brookfield's infrastructure group said.
Brookfield's parent — the Brookfield group — is a commercial real estate corporation that manages $80 billion in assets.
With files from The Canadian Press