Bermuda’s brookfield in share offer

Posted by on Oct 19, 2010 in Local News & Alerts | 0 comments

Brookfield Infrastructure Partners LP raised by A$42.2 million ($41.7 million) its bid to buy the 60 percent of Prime Infrastructure Group it doesn’t already own.

bobmaconbusiness.com

Prime investors will receive an additional A$0.20 a security in cash from Bermuda-based Brookfield, its biggest shareholder, to be paid as a special distribution, the two companies said in a statement today.

Brookfield announced its takeover proposal on Aug. 23, offering Prime shareholders 0.24 of its shares for each security they held, sending the target’s shares surging by the most in a year.

The bid valued Prime at A$1.6 billion, or A$4.60 a share, based on Brookfield’s closing price on Aug. 20, they said at the time.

The addition of the cash component represents a 33 percent premium to Prime’s share price before Brookfield made the offer for the Sydney-based owner of infrastructure assets.

The new offer raises the bid to A$5.21 per share based on Brookfield’s closing price yesterday, the companies said.

Prime shares rose 6.3 percent to A$4.89 at the 4:10 p.m. close of trading in Sydney, their highest since Nov. 9.

About 40 percent of Prime’s largest shareholders support Brookfield’s plan, the companies said.

The backing “reflects positively on the merits of the transaction,” Prime Chairman David Hamill said in today’s statement.

To contact the reporter on this story: Nichola Saminather in Sydney at Nsaminather1@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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