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Bullboard - Stock Discussion Forum Western Wind Energy Corp V.WND

TSXV:WND - Post Discussion

Western Wind Energy Corp > HORN TOOT!!!
View:
Post by sultan66 on Aug 29, 2012 1:35pm

HORN TOOT!!!

GREAT NEWS TODAY...

I don't often toot my own horn but I don't have a choice here....

Refer to post 30581518 from Jan 24:

Hi all,

I don't often come out and make bold take over predictions but if you hear me out, I think I may be onto something.

Brookfield Renewable Energy Partners LP (BEP.UN) is a company that is pretty similar to ours. For instance, they just bought a 150MW windfarm and increased their interest in two other nearby wind farms in Techapi, California. https://brookfieldrenewable.com/content/2012/brookfield_renewable_energy_partners_increases_dis-31345.html Does Techapi sound familiar? Well it should, because that is where Windstar is. Also, we have Windridge and Windswept projects in Techapi which total another 100MW. BEP.UN is 73% owned by the parent company Brookfield Asset Management (BAM).

Today, BAM announced a secondary offering of 11.4MM shares of BEP.UN at a price of $26.25 for cash proceeds of 297MM in order to fund growth through acquisitions and construction. https://brookfieldrenewable.com/content/2012/brookfield_announces_secondary_offering_of_lp_un-31553.html This closes on Feb 2.

Our current market cap is roughly 112MM. We are about to get approx. 100 MM from the US government and once we ink this Puerto Rican deal, we will have a further tax credit in our favor. The company believes that we will be able to tsell the credit at 80% of its value payable at a maximum of 8MM per year for 8ish years.

Factoring in these elements, I dont think a $3-3.50 value is far off. with 61MM shares out at what we'll call a $3.25 take out price, that is a purchase price of 198MM for the whole company.

Conclusion, following this share sale, BAM will be well positioned to make a fair offer for WND, a company that is a great fit for them and their growth strategy.

You never know right?

SuLtAn

Comment by peter75 on Aug 29, 2012 1:55pm
great call, I have been told that you can as a Canadian company buy the company  WND and actually comoditise the tax credit by selling them to another USA company that wishes to take advantage of the tax savings I have no idea as to the nuts and bolts of such but I realise that this is common practise My take is that Brookfield has the inside track at $2.25 per share however if Brookfield ...more