Sorry to keep barking on about this.. A cost-of-capital (CC)...

Sorry to keep barking on about this.. A cost-of-capital (CC) play for a whole company acquisition make sense. Selling off parts, leaving a much smaller, 'mini-BBP' would be a fall-back position if a whole company sale could not be achieved.

There are plenty of power companies and asset managers, both domestic and international, who have a CC significantly lower than BBP so for them $330m EBITDA plus any post-merger cost savings, is worth paying for.

The current market cap of BBP is about $37m. The only reason BBP hasn't been taken out on-market is because the acquirer needs to overcome the BNB management agreement, which means they have to go through the process with the board.

For shareholders who have a very high average cost, this may not work out so well. For those who have been buying recently, I'd say it's going to pay off nicely. I can't see BBP selling for anywhere near the depressed SP levels we are seeing.

All credit to BBP for coming out with the announcement today. Remember though that BNB will need to mark their BBP position to market in about 10 days time so they have a vested interest in the SP rising during this time.