Brookfield Infrastructure Partners
) decided to monetize its Australian regulated business and
reinvest the proceeds in more lucrative businesses. The
partnership has entered into an agreement to sell its 42%
interest in an Australasian regulated distribution business for $
410 million (NZ$525 million).
Brookfield Infrastructure acquired its initial interest in the
business in 2009 as part of the recapitalization of Babcock &
Brown Infrastructure ("BBI"). Brookfield invested nearly
$1.1 billion for the recapitalization of BBI.
The partnership follows the practice of divesting its mature
assets and reutilizing the proceeds in more profitable
businesses. It started in Jun 2009, when the partnership sold its
interest in Brazilian transmission investments for $275 million
acquired in 2007. Last month, the partnership decided to sell its
interest in the U.S. Pacific Northwest timberland operations for
Brookfield Infrastructure aims to have a globally diversified
portfolio of high quality infrastructure assets that will
generate sustainable and growing distributions over the long term
for its unitholders. It aims for a 3% to 7% increase in the cash
The partnership intends to grow through both organic and
inorganic means. In 2012, the partnership invested $1.4 billion
to acquire high quality infrastructure assets for its utilities,
transport, and energy platforms. Brookfield Infrastructure will
also invest in infrastructure assets in 2013, to further
strengthen its asset portfolio and return more to its
However, the recovery in the global economy is still patchy with
varying levels of consumer confidence. Austerity measures adopted
by the government do not improve the picture either. We presently
retain a Zacks Rank #4 (Sell) on Brookfield Infrastructure.
Other well-placed operators in the sector presently carrying a
favorable Zacks rank are
Companhia Paranaense de Energia
Integrys Energy Group Inc.
MGE Energy Inc.
). All the companies presently carry a Zacks Rank #1 (Strong
Toronto, Canada-based, Brookfield Infrastructure was founded in
2007. The partnership owns and operates infrastructural assets on
a global scale. The high quality, long life assets allow the
partnership to generate consistent cash flow.
BROOKFIELD INFR (BIP): Free Stock Analysis
COPEL-ADR PR B (ELP): Free Stock Analysis
MGE ENERGY INC (MGEE): Free Stock Analysis
INTEGRYS ENERGY (TEG): Free Stock Analysis
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