B&B Power finalises Neerabup sale

Babcock & Brown Power today announced the financial close of the sale of its interest in the Neerabup power station to the infrastructure arm of ANZ.

BBP said the sale resulted in the return of a $43.3 million letter of credit which was drawn under a facility provided by Babcock & Brown.

ANZ had offered a total of $130 million in November for the purchase of BBP's 50 per cent interest in Neerabup and 70 per cent interest in the NewGen Kwinana power station.

Joint venture partner ERM Power had pre-emptive rights to purchase the interests.

Today BBP said it anticipates that the sale of the NewGen interest will be settled during the first quarter this year.

Proceeds from the sale will be used to fully repay BBP's debt facility.