@schneed At the moment the renewable industry is very fragmented. This current value drop catalyst may spawn a LOT of M&A where larger corporate entities can enter and consolidate the capital assets and know how at a bargain price. I think some have already gone partway down that path such as AGL who are trying to transition from coal. The bargain prices for various renewable assets right now would be a boon to those with cash reserves and the ability to maximise the benefit.
The consolidation into larger entities may bring a more cohesive commercial approach that comes with greater economies of scale and a diversified generation and firming profile. IFN is in a good position here as it is already sweating it's control assets using capital light contracts and the renewable generation assets with more firming.
IFN would be a great central acquisition to build on with additional M&A or to own partly with a capital injection to fund useful M&A. We may not have seen the last of Brookfield if the latter is a likelihood.
When the viral dust settles a bit it will be on M&A wise IMHO.
DYOR of course Strange
IFN Price at posting:
39.0¢ Sentiment: Buy Disclosure: Held
