Gozza, can you make comments on outlook for Vic and SA market as...

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oceaneagle

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06/07/20

10:03

Post #: 45661568
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Originally posted by Gozza: ↑

No surprises here that the Infigen board has again recommended that we accept Iberdrola’s offer.
I for one will not be accepting this offer, for the very reasons they outline in this statement as the cons to accepting.

My outlook (working in the electricity market as a spot price forecaster amongst other roles) is that NSW wind and batteries is one of the most, if not the most, attractive value propositions for new generators in the electricity market right now and into the future.

NSW will have Liddell closing in 2023, Vales Point closing around 2029, Eraring before 2032, and Bayswater around 2035. Together, these represent more than 75% of NSW generation. No other state has such a hefty closure schedule for its coal fleet.

Iberdrola know this, and they know that an established wind operator with good prospects for new projects are in an excellent position to make long-term profits from these closures. I can only speculate why the Infigen board doesn’t seem to see this value. My guess is that they’re not thinking 10+ years ahead, and instead are thinking no further than the visibility we have in the ASX futures market (3 years).

Why I’m not accepting comes down to two simple points:
- I believe Iberdrola’s offer undervalues Infigen and it’s long-term prospects
- I believe a better offer may arise

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Gozza, can you make comments on outlook for Vic and SA market as per above. Thanks in advance.

IFN Price at posting: 92.0¢ Sentiment: None Disclosure: Not Held
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Gozza, can you make comments on outlook for Vic and SA market as...

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