On Thursday the company told the ASX and NZX it intended raising about A$388 million of equity capital via a placement of stapled securities and a non-renounceable entitlement issue. The money will fund further identified investment opportunities, including the expansion of Queensland’s Dalrymple Bay Coal Terminal, and be used to complete the acquisition of the diversified European International Energy Group.
Managing director Chris Chapman said Prime Infrastructure was currently expanding DBCT’s capacity from 54.5 million tonnes per annum (mtpa) to 60.0 mtpa through an A$28.3 million capital expenditure program, which was fully funded by capital raised last February.
But based on DBCT user indications and demand-supply forecasts, an increase in capacity to over 60 mtpa would be required, with the first expansion phase expected to cost about A$400 million.
Prime was in the final stages of acquiring IEG - a diversified gas transmission, distribution and supply business with operations in the UK, Channel Islands, Isle of Man and Portugal - for about A$600 million.
Prime also anticipated further investment opportunities arising in the UK, including the opportunity to purchase other assets similar to IEG’s Independent Gas Transporter (IGT) business.
“IEG is an ideal entry point for Prime Infrastructure into the rapidly expanding IGT market in the United Kingdom,” said Chapman.
Prime – which owns New Plymouth-headquartered network company Powerco – is rebadging itself into Babcock & Brown Infrastructure, an ASX-listed infrastructure fund, and shifting its headquarters from Brisbane to Sydney.
