SYDNEY, Nov 12 (Reuters) - Brookfield Asset Management on Thursday called for bids for half its Australian coal export terminal by next Wednesday, seeking at least A$656 million ($477 million), according to a term sheet seen by Reuters.
Brookfield has upped its offer to an annual dividend yield of 7%, according to the term sheet, higher than the more than 5.5% it had previously offered in an approach to selected investors.
Brookfield is selling a 51% stake in Dalrymple Bay Infrastructure (DBI) for A$2.57 per share, the term sheet said. About half the proceeds will go to the investment firm, with the rest to repay debt and pay transaction costs.
Brookfield and DBI did not immediately reply to requests for comment.
The offer will compete for the title of Australia’s biggest float in 2020 with Macquarie Group’s expected listing of software provider Nuix, which is likely to split investors between tech growth and coal-powered dividends.
Including net debt of A$1.78 billion, DBI is expected to have an enterprise value of A$3.07 billion, the term sheet said.
Queensland state, where the metallurgical coal export terminal is located, has agreed to buy a 9.9% stake in DBI for A$128 million, the term sheet said.
Brookfield’s offer includes plans to sell a third of the remaining 49% stake after DBI announces 2021 first-half earnings and the remaining two thirds of the company in two stages following the subsequent half yearly results.
A prospectus for retail investors is expected to be filed with the corporate regulator on Friday Nov. 20, the term sheet said, followed by a auction for retail investors on the week starting Nov. 30.
The IPO - which was put on hold earlier in the year because of the coronavirus pandemic - is being managed by Merrill Lynch, Citigroup, and Credit Suisse, alongside retail brokers Bell Potter, Wilsons, and Ord Minnett.
$1 = 1.3738 Australian dollars Reporting by Paulina Duran in Sydney; Editing by Jane Wardell