Brookfield Infrastructure buys Prime
Brookfield Infrastructure Partners LP said Sunday that it will acquire the remainder of Australia's Prime Infrastructure Group, in a deal the companies valued at about $1.4 billion.
Under the terms of the deal, Brookfield Infrastructure will acquire the remaining 60 percent of the Sydney-based infrastructure company.
Prime's security holders are set to receive 0.24 Brookfield units, although its security holders that have smaller stakes in the company can also receive a cash payout for their holdings — for up to 4,000 units.
"We believe that this merger provides significant benefits to investors of both Prime and Brookfield Infrastructure," Brookfield Infrastructure CEO Sam Pollock said in a statement.
The deal still needs shareholder approval as well as an OK from regulators in Australia, New Zealand, Europe and the United States.
It is expected to close by the end of the year.
Brookfield Infrastructure Partners LP, which is based in Bermuda, owns and operates electricity transmission systems and timberlands in North and South America. It was set up by Brookfield Asset Management Inc., which supports the deal.
Copyright 2010 AP News
