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Western Wind Energy Corp V.WND



TSXV:WND - Post by User

Comment by agrossfarmon Oct 10, 2012 12:19pm
84 Views
Post# 20468866

RE: RE: Amazing

RE: RE: Amazing

NAV?

Irrelevant.

2008 prices, at the top of the bubble (the Bubble generally and for uneconomic alternative energy)?

Irrelevant.

The value now is the bid, NOW.

And buyers look for EBITDA, what they have to pay to get it, and how it compares to their own operations and other ways they can expand.

Viterra is NOT a utility and did not have the same regulatory hurdles. It is not a comparable. The recent and ongoing wind installations bought by AQN from Gamesa might be more appropriate.

https://www.gamesacorp.com/en/communication/news/gamesa-agrees-to-sell-us-wind-farms-totalling-480-mw-to-canadas-algonquin-power-utilities-corp.html?idCategoria=0&fechaDesde=&especifica=0&texto=&fechaHasta=

And no, once an offer is announced, the offer price is NOT automatically a floor. It depends on all the details of the offer AND the time until closing. The longer the wait, the lower the share price compared to the deal price. The more contingencies in the deal offer, the larger the list of MAEs, the higher the Market discount for uncertainty.

MAEs are Materially Adverse Events and they allow a deal to be cancelled or renegociated. If you are an experienced risk arb, and there are not many of them here, they know that term because they have seen deals cancel. They also know the time delay for the HSR review in the US is 30 days if there is no objection. And they know that HSR is the process specified by what is called the Hart Scott Rudino Act.

My point is that the assets in the US and the company in Canada increases regulatory hoops that must be navigated and that a deal is not a done deal until it is done. If you have not already guessed, I have been involved in these kinds of situations for many years and have read lots of regulatory filings and deal documents.

I am trying to help people be realistic, make their decisions and then relax, understanding the risks, rewards, and process. A number of posters here are very unrealistic or at least their purposes for posting has them choosing to say unrealistic things for reasons we can only guess.

IMO there is profit to be made here. But the lack of realism, experience, and being too attached to one's investments can ruin things.

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