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Alterra Power MGMXD

Alterra Power Corp is a renewable energy company. It is primarily focused on development, construction, and operation of renewable power projects. The company's business has four major segments - Construction and Development, Geothermal, Hydro, Wind, and Solar.


OTCPK:MGMXD - Post by User

Post by BoldForbeson Sep 07, 2015 5:50pm
95 Views
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
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