KEY POINTS:
MELBOURNE - Babcock & Brown Infrastructure (BBI) has more than doubled its first half earnings and reaffirmed its distribution guidance for the 2007 financial year.
The utilities investment firm, which has interests in New Zealand, posted a 136.2 per cent increase in interim net profit to A$13.5 million ($15.2 million).
BBI also today announced a capital raising worth A$325 million to institutional investors.
"It is intended that the proceeds of this issue will be used towards the funding of the previously announced purchase of NorthWestern Energy Corporation, an integrated energy utility company operating in the United States," BBI said.
The NorthWestern buy was announced on April 25 and is being snapped up for US$37 a share, valuing it at US$2.23 billion.
On its outlook, BBI said it plans to pursue organic growth opportunities as well as bolt-on acquisitions.
"BBI's key objectives continue to be the prudent management of this existing portfolio and to acquire value accretive assets with long term, secure and stable cash flows," chief executive Steve Boulton said.
The Australian-based infrastructure company owns 100 per cent of New Zealand electricity and gas distribution business Powerco, for which it paid nearly $680 million in 2004.
Powerco forms part of a portfolio of energy and transport infrastructure companies owned and operated by BBI.
- AAP, NZ HERALD STAFF
