The news source reported that the Australian investment group is seeking to dispose the assets as it faces a credit crunch. The group hopes to divest its European wind power assets in the third quarter of 2008.
Babcock & Brown (B&B) together with its B&B Wind Partners satellite fund, owns the European wind power assets that are to be sold. These assets are estimated to be worth around A$2.5 billion, according to the Financial Times.
The news source reported that prospective buyers, who have the option of buying all of the assets or only select ones, could be in an advantageous position as B&B sees itself in a tight financial situation due to the global credit crunch.
B&B has reportedly suffered from repeated hedge fund short-selling of its stock, pushing the group’s value below the A$2.5 billion mark. The group is also reviewing a A$2.8 billion debt package.
B&B owns around 800MW of wind generation capacity in Europe. The sale is also likely to include Enersis, the Portuguese wind power company jointly-owned by B&B and B&B Wind Partners.
