National Gas Pipeline Company (NGPL) is valued at A$7.6 billion. Babcock & Brown Infrastructure (BBI) has acquired a 32% stake in MidCon. The vendor, Knight Incorporated, is to retain the remaining 20% interest in MidCon and will continue to operate the pipelines under a 15-year operating agreement.
Babcock & Brown (B&B) has said that the financial close on the acquisition is expected to be reached in early 2008. Its direct commitment is 6% of the 80% stake acquired in NGPL. It is expected the 6% stake will be sold down to one of its managed infrastructure funds or investment partners. B&B will continue to manage the investment on behalf of the syndicate and other managed accounts.
Mike Garland, head of the North American infrastructure division at B&B, said: The acquisition of a significant stake in NGPL, an important regulated infrastructure asset in the Midwestern markets, creates an important infrastructure platform in the North American market for BBI and other B&B managed accounts.
