Brookfield Infrastructure (BIP, BIP_UN.TO) announced that the company and its institutional partners have executed definitive documents to acquire the remaining 45% of the Autopista Vespucio Norte or AVN toll road that they do not currently own for approximately $590 million, comprised of $290 million in cash and the assumption of $300 million of debt.
Brookfield Infrastructure stated that it will participate by investing approximately $165 million, which will result in an aggregate ownership interest in AVN of 51% upon completion.The transaction is expected to close in October of 2012.
Brookfield Infrastructure noted that it has executed definitive agreements to acquire 85% of Inexus from Challenger Infrastructure Fund for approximately $15 million, plus a contingent payment of approximately $40 million if certain milestones are reached.
As per the recapitalization, if completed, Brookfield Infrastructure intends to merge Inexus into its existing UK regulated distribution business and invest approximately $450 million, including the contingent payment, to reduce leverage of this entity to investment grade levels. The acquisition and the recapitalization are expected to close in the fourth quarter of 2012.
If the AVN and Inexus transactions are both completed, Brookfield Infrastructure anticipates that it will invest a total of approximately $630 million in these two investments.
Brookfield Infrastructure noted that it is currently considering a number of acquisitions in its key sectors - utilities and transport and energy - that are consistent with its strategy. Recently, Brookfield Infrastructure and its institutional partners entered into discussions with Abertis Infraestructuras, S.A. to create a joint venture to acquire a 60% interest in Obrascon Huarte Lain Brasil S.A. for approximately $1.7 billion, comprised of $1.1 billion of equity and $600 million of assumed liabilities.
Brookfield Infrastructure and its institutional partners would own 49% of the joint venture and Abertis would own the remaining 51%.
The company announced the issuance of 9.68 million L.P. units in the U.S. and Canada and the concurrent private placement of 3.86 million redeemable partnership units to Brookfield Asset Management Inc. (BAM,BAM.TO) for aggregate gross proceeds of $445.07 million.
Brookfield Infrastructure also expects to record a net loss of $26 million or loss of $0.14 per unit for the quarter ended June 30, 2012. Brookfield Infrastructure's FFO for the second-quarter totaled $111 million or $0.60 per unit compared to FFO of $102 million or $0.65 per unit in the second quarter of 2011.
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