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Western Wind Energy Corp V.WND



TSXV:WND - Post by User

Post by bakken13on Feb 18, 2013 11:30am
232 Views
Post# 21005519

Take note

Take note

Not one of the posters who are "advising" others to hold on have ever, EVER, presented their numbers to prove that BEP's offer of $2.60 is not fair.

I had done an analysis on the basis of what I have seen in previous deals, and what I thought were reasonable power prices for California and Puerto Rico. I have since found that my power prices must have been too high, as WND's cash flow numbers didn't seem to support such high assumptions.

So I went back to WND's own numbers, took into account the poor wind conditions and issues they had with production, and projected the cash flows if all systems were running normally, and with Yabucoa on line. I then used those cash flows and a reasonable cap rate to come up with what a buyer might consider paying for the assets. It was then that I realised that BEP's offer was pretty much in the ballpark, and I understand why they will most likely not raise their bid. There has to be some profit in it for BEP, or why would they want to buy the company?

So is that why we are not seeing other companies compete with BEP, because there isn't any room to pay more? I don't know for sure, as only those with access to the data room have enough information to make that determination, but it does make me wonder.

And that is why I tendered.

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