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Western Wind Energy Corp V.WND



TSXV:WND - Post by User

Comment by contrainvestoron Jan 25, 2013 11:22am
135 Views
Post# 20890203

RE: Kingman spinoff?

RE: Kingman spinoff?

If you read the press release from a couple of days ago, it was mentioned.  I think WND's starting position was that everything would be spun out except for Windstar, and Brookfield came back with just Yabucoa, and so there was further negotiating to be done which is why a deal was never reached.  I think we can all agree that at $2.50, you are probably looking at fair value for Windstar alone, if use can be made of the tax credits by the buyer.  Ultimately, I think the concept of a spin-out is difficult because it requires significant tax planning and can not be thrown together in a few days, and certainly not by a buyer by Brookfield that has not had the opportunity to do significant due diligence.  I suspect that part of the delays with the other potential bidders is that they may not want everything, and so if there is going to be a spin-out, all parties need to get comfortable with the tax implications. 

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