Babcock & Brown Power Limited (BBP) said it had signed a binding agreement for the sale of all assets of Alinta EATM Pty Limited to Aurora Energy. The company said it would use the expected $15 million proceeds to pay down debt.  

BBP said it expected to complete the sale of its interests in the Kwinana and Neerabup power stations within the next three months.

In addition to the $15 million purchase price, BBP said it expected to receive a working capital adjustment of approximately $10 million, depending on the timing of financial close, and the release of a $10 million cash backed letter of credit.

The company said partial completion of the sale of interests in the Kwinana power station and internal funds had been used to repay $71 million of the $118 million BBPH facility to date.

The remaining $47 million outstanding was expected to be repaid from internal funds and proceeds to be received on final completion of the asset sales.

At 1413 AEDT, shares in Babcock & Brown Power were unchanged at 10c.