Interesting their wording of IFTs eye to fully exit TLT... will have to revisit original announcement - and that it would likely lead to a 100% acquisition.
A majority stake at 65% could not enforce compulsory acquisition (yes, they would have control of board and strategic decisions / financial operation)... and being below 75% they would still need to acquire another 10% before being able to pass a special resolution to do such things as delist etc by themselves...
Pretty sure that TLT's other substantial holder - Mercury - with a 19.9% holding and PPA's in place on some of the wind farms owned by TLT would be needing some sweet talking before 100% acquisition would even be possible.
I think there is definite value in the development of wind and solar assets... globally - the demand for sustainable sources of power generation are only increasing as older sources retire & no longer financially viable as low cost sources of energy... But the operation of renewable generation assets - particularly in Australia, is one with very low expected returns in the near term while spot prices continue to fall due to coal plants still being in operation. 2023 and the retirement of Liddell may change the spot price somewhat... but the more I view it - now is a great time to sell TLT.
My view on storage and pumped hydro however, is much more optimistic... I also view offshore wind in a similar (somewhat) light - as its generation profile is more stable and closer to what a baseload requirement would be viewed as.
GLTAH - very confident that IFT have a lot to offer us working forward.
IFT Price at posting:
$6.94 Sentiment: Buy Disclosure: Held
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