In a bid to reduce its debt, Babcock and Brown Power will sell off its remaining stake in a power station to the industry fund-backed group IFM.
Industry Funds Management (IFM) has bought Victorian power station Ecogen Energy from Babcock & Brown Power (BBP).
Under the deal, BBP will sell its remaining 73 per cent stake for $87 million to co-shareholder IFM.
"The sale of Ecogen highlights the underlying value placed on quality power generation assets and is a further demonstration of BBP's commitment to progressively reduce gearing," BBP chair Len Gill said.
IFM is backed by 37 not-for-profit industry superannuation funds. The firm has been investing in infrastructure assets since 1995 and has completed transactions worth $7.1 billion.
"IFM has been an investor in Ecogen since 2003 and looks forward to working with Ecogen's highly experienced management team to maximise opportunities for the company," IFM head of infrastructure and specialised funds Kyle Mangini said.
Ecogen uses a cleaner source of energy, adopting a gas fired energy generator compared with the coal generators that dominate Victoria, Mangini said.
BBP plans to use the proceeds from the sale to repay its corporate debt facility.
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