sorry just noticed your comment re my earlier post. Yes thanks for that I missed the comment as it was in the Alinta EATM announcement. I understand that the delays in completion on the Kwinana and Neerabup are in part caused by the JV partner not indicating whether they would or would not exercise their first rights of refusal re buying BBP stake or their tag along rights for sale. Apparently they have done neither. Now BBP dealing with usual condition precedent issues, i.e. third party consents etc and taking time. but this deal needs to complete prior to end March so that BBP does not default on repayment of the BBPH debt facility.
On the sale process the best I can ascertain is that they have received a number of indicative bids for all of the business, or the business in 2 parts, they are dealing with all biders and hopefully we will hear soon where this is all going. I believe the plants continue to perform well and whilst most production is hedged they would have some benefits from the recent heatwave.
seperately to the sale process I think they are also exploring recapitalisation options. Obviously dilution is an issue for current shareholders but perhaps some converting instruments or other hybrids may be being considered. I think the business whilst producing good cashflows, is likely to have considerable positive uplift in cashflows 2-3 years out as the out of money hedges on power sales expire and they manage to receive market price. Thus there could be a possibility that in final analysis some form of recap proposal looks better than straight sale over the medium term for BBP holders. The right deal on this front will gain my support.
They report 27 February and I guess we will get an update on progress then.fingers crossed
BBP Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
