BBI shareholders will be asked to vote in favour of a massive dilution of their shares, now that an independent expert has deemed the company’s $1.8 billion recapitalisation plan is fair and reasonable.
For the affected investors, the deal would see the value of $119 million in shares fall to just $1 million, as their ownership in the company falls from 100% to under 1%.
BBI is seeking to wipe off $1.2 billion in debt.
The expert’s report advises that without the recapitalisation Babcock & Brown Infrastructure is at risk of insolvency. Shareholders will be voting on the proposal on November 16, and a 75% majority must vote in favour in order for the deal to go ahead.
Babcock & Brown Infrastructure
ASX Code: BBI
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For more on this news story:
- The Australian: “BBI wins support for recapitalisation plan”
- The Age: “$118m haircut looms for BBI investors”
