Grand toal"
Wind Farm creates friction between First Nations" Friday OctOBER 5 2012 g&mail a tribe has a 50 percent stake in a proposed wind farm worth 140 m of the 240 m project
Located along the Bow Lake on the shores of Lake Superior. This wind farm has been in the works since 2007
Once completed the 50 percent share will provide the local band with 2 mililon dollars annually for 20 years (keep in mind no land fees)
Article goes on to say the lead developer bluearth Rewnewables loves the site because transmission lines and roads are already there
WHY BROOKFIELD WILL PAY A PREMIUM FOR WESTERN WIND ENERGY
A side from already having 16 percent of WND bre.un has 3 wind farms in Tehachapi that produce 274 megawatts of power Brookfields total companies electric generation is 5000 mega watts Thus this site creates over 50 percent of total power generation
Wnd has its Windridge and Windstar also in Tehachapi , these two properties produce 125 mega watts of electricity
If Brookfield were to secure these farms all office staff buildings and management along with other internal overheads would be reduced greatly. I would say 75 percent as a starting number
Looking at Wnd income statement Dec 31 2011 you will see selling/Gen admin/ expenses total 7.07 million along with depreciation/Amortization of 1.36 and other operationalexpenses of 300k
Grand total of 11.46 million
Cut that by 2 and you get 5 m plus to the bottom line
Cut your long term debt with the savings from above coupled with lowering of interest rate percentage on long term debt
Factor in The new project in Puerto Rico
BER.UN WAS TO PAY 240 m for this company it is 4.00 per share based on 60 m outstanding shares
They could than sell off duplicate assets in the form of bricks and mortar et al
Wnd intergrated could give ber.un 4 million in bottom line revenue based on the lake Superior model
Another 7 to 8 million in mentioned above for a grand total of 11 to 12 million annually
ber.un already owns 16 percent so say on a 4.00 bid they are really paying 3.75 to 3.80 depending on warrents and side bar agreements when they bought this stock
Factor in debt loads of cost of capital and 34 million in over all equity plus tax credits and future earnings growth and the ramp up in sales forecasted for 2013 you get a money machine producer for the right buyer with deep pkts