China's state-owned utility State Power Investment Corp is to acquire the 106.8MW Taralga Wind Farm Pty Ltd in NSW for an enterprise value of about A$300m (US$227m). It was built at a cost of A$280m.
Back of the envelope time. That is about $3m per MW.
IFN has 557MW of capacity ($1670m) less $786m of debt = $884m.
Current market cap is $417 - a long way short of this. On the Taralga pricing alone, IFN is worth about $1 a share.
Yes, some capacity may be older or newer or in less windy or more windy locations. This is a very rough and ready estimation. It does not consider the IFN project pipeline of a further 1100MW.
Are you ready for a vigorous upward re-pricing?
IFN Price at posting:
56.0¢ Sentiment: Buy Disclosure: Held
