Brookfield Asset Management, Canada, has invested over US$1 billion to sponsor the restructuring and recapitalisation of Babcock and Brown Infrastructure.
Australian company BBI has a diverse portfolio of assets including the booming Dalrymple Coal Terminal, which Brookfield is now a 49.9 percent stakeholder in.
Under the agreement, Brookfield Asset Management and Brookfield Infrastructure have jointly purchased around 35 to 40 percent of stapled securities in BBI, and directly purchased a significant stake in Dalrymple Bay Coal Terminal and 100 percent of PD Ports, a ports business in northeast England.
"This is a unique opportunity for Brookfield to invest in high quality, core infrastructure assets," Sam Pollock, CEO of Brookfield Infrastructure Group, said.
"Due to the contractual and regulated nature of their revenues, BBI's portfolio … businesses tend to be resilient in economic downturns and are expected to generate consistent cash flows for shareholders now that we've addressed BBI's capital structure issues," Mr Pollock said.