positive, page-5

Look for a significant reduction of their debt.... and profits of about $300m to $500m from sale of just a small portion of their wind assets. Sale is very close.

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http://www.vnunet.com/business-green/news/2213206/babcock-brown-puts-european


March 31, 2008 • Europe
Babcock & Brown plans to sell wind farms
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Babcock & Brown, the Australian infrastructure investor, is planning to sell its European wind farms in a deal that could be worth between €3.5bn ($5.5bn) and €4bn.

The group will say today that it has appointed Deutsche Bank and JPMorgan to sell its European wind energy assets and those owned by Babcock & Brown Wind Partners, its quoted wind energy fund. These include wind farms in Spain, Portugal, Germany, Italy and France.

Babcock & Brown Wind Partners owns about 3,000MW of wind generation capacity worldwide, with just over 800MW of this in Europe.

But the group said last month that the market had not recognised the value of its European assets, and it would look at selling them. The wind energy sector is attracting strong investor interest, and European wind businesses have been changing hands at high prices.

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My comment:....Note the Blackstone story below:

Gives you some idea of the high worth of this renewable energy. Blackstone spending about A$1.8b for 400 megawatts. BNB Group have 3000 megawatts opertional.

Instead of writedowns....company should have ben savvy enough to get revaluations on their wind portfolio, before we got to this stage.

I read in the Annual Report that an additional 16,000 megawatts is due for completion in the States in 5 years.....with actual costs so far, AT BOOK.

Work it out for yourself......their wind assets ALONE, would be close to their enterprise value (ie market cap plus gearing) for the combined parent and Babcock Brown Wind groups.

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http://www.iht.com/articles/ap/2008/07/15/business/NA-US-Blackstone-Group-Wind-Farm.php

Blackstone invests in $1.6B German wind farm
The Associated PressPublished: July 15, 2008


NEW YORK: Investment manager Blackstone Group LP said Tuesday it has partnered with German wind energy developer Windland Energieerzeugungs GmbH to build a wind farm off Germany's northern coast at a cost of more than 1 billion euros ($1.6 billion).

The 80-turbine wind farm will have a combined generation capacity of 400 megawatts, Blackstone said. When complete, it will generate roughly 1.6 billion kilowatt hours annually, or enough to supply 500,000 households each year, the New York-based firm said