Published April 24, 2009

BBGI dropping 'Babcock & Brown' from its name

By EMILYN YAP

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AFTER a trying year in 2008, Babcock & Brown Global Investments Limited (BBGI) is set for a fresh start going by the agenda for its annual general meeting (AGM) today.

For one, BBGI is seeking shareholders' approval to change its name to simply 'Global Investments Limited'. This is part of its plans to delink itself from Australian-listed Babcock & Brown (B&B), which has been crippled by debts since the financial crisis hit and is now under voluntary administration.

Technically, the BBGI group and B&B already have separate ownership, boards of directors and legal structures. BBGI has also said that it does not expect any impact from B&B's troubles.

Nevertheless, dropping 'Babcock & Brown' from its name would clearly reflect the planned separation and shareholders will get to vote on this.

But it will take more than a name change for BBGI to delink from B&B. The company is undertaking a strategic review to identify potential investors and maybe also a new manager to break away.

The AGM will be an avenue for shareholders to obtain updates, such as the number of investors who have shown interest and the expected duration of the review.

The BBGI management may also provide dividend guidance at the AGM and shareholders will be hoping for good news. The company had earlier stopped dividend payments for the second half of 2008 in a bid to trim debts - it had a corporate debt facility of A$32.6 million (S$34.6 million), according to an announcement on April 8.

There were encouraging signs in that announcement when BBGI disclosed the sale of its music copyright assets.

It said that sale proceeds would contribute to debt repayment and it might be able to settle remaining corporate debt this month.

'The company is expecting to be able to provide dividend guidance in respect of the half year ending June 30, 2009, prior to or at the company's AGM,' it added.

BBGI shares have found favour with the market since the news broke.

They closed at 18.5 cents yesterday - three cents up from the previous day and more than double their value since April 7.