OTCPK:MGMXD - Post by User
Post by
BoldForbeson Sep 07, 2015 5:50pm
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Post# 24083931
Major Utility Company Quietly Purchasing Solar Interest?
Major Utility Company Quietly Purchasing Solar Interest?I have found a several recent events interesting. As previously mentioned, I live in the southeast US. A major utility, Southern Company (SO), has recently been making a few investments\acquisitions in solar and natural gas.
September 7, 2015 - Southern Company purchases interest from First Solar
https://finance.yahoo.com/news/first-solar-sells-desert-stateline-203508706.html
September 1, 2015 - Souther Company purchases interest from Canadian Solar
https://finance.yahoo.com/news/canadian-solar-sells-tranquillity-solar-210509832.html
Southern Company also purchased Atlanta Gas Light which is a natural gas pipeline (to end consumer).
The two solar investments are significantly smaller than the natural gas investment (I think the AGL acquisition is ~$18B US), but it has me wondering if this is the beginning of a industry trend: that is major utilities quietly purchasing alternative energy power plants.
If this is a trend, perhaps it will help Alterra Power's valuation with a "take-over" premium priced in...I am aware of Ross Beaty's intent to build a long-term family business, just thinking of a valuation increase due to a sought after asset from larger utilities.
Or perhaps AXY basically becomes a GC for larger utilities companies for alternative energy projects. In real estate you want to build a building and get it fully leased; then at this premium valuation you sell it. Perhaps AXY can do the same thing for alternative energy projects?
Just pondering,
Bold Forbes