Macquarie offer wont help most BrisConnections investors- ASA says

BrisConnections says the Macquarie Group's offer to bail out the road project's smaller investors could push it towards privatisation.

Macquarie is one of the underwriters for BrisConnections' multi-billion-dollar Airport Link road project in Brisbane.

It is offering to take over the partly paid shares of investors who own 50,000 units or less.

The deal would mean 80 per cent of investors will not have to pay the second instalment to BrisConnections next week, but they will not get a return for their stock.

In a statement, BrisConnections says if a large number of investors take up the offer, it will put the company a step closer to privatisation.

The Australian Shareholders Association (ASA) says the deal will not help larger investors who are still liable for millions of dollars.

ASA spokesman Stuart Wilson says the Macquarie Banking Group's offer to bailout some BrisConnections investors will not help those worst affected.

"There are quite a number of retail investors who have in excess of 500,000 shares, so are looking down the barrel of a $1 million debt over the next year," he said.

"It's not one or two - it's definitely in the tens perhaps hundreds."

Mr Wilson says most investors who own more than 50,000 units are still in financial strife.

"Unfortunately it doesn't reach the people that need it the most," he said.

"Really it's only people who have the larger amounts that are in dire straits.

"The ones who have these lesser amounts most probably can afford to pay the next instalment."

Macquarie's offer closes on May 4.

More Quotes and Company Information:MACQUARIE BANK LIMITED (ASX: MBL.ax) ... read original article
Wed 22nd April 2009 - 12:27pm