Syd, Totally agree. If they get $1.6M per MW (low end), we should see the SP of BBW up to at least $2 (see my earlier posts). If they change the management agreement to allow a takeover of management we may see the full value of the assets reflected in SP to around $3 or higher. I think BNB hold 11% of BBW, currently valued at $134M at $2 that’s $158M, at $3 that’s $237M.
BNB have reported 16000 MW in wind development ($25.6B). That is absolutely massive and even if they rely on developers margins alone (i.e. no equity), this will be enough to keep the money rolling in. These future developments are not worthless (see Allco sale – no actual wind farm on the ground, yet handsome profit reported on sale of project). I think if they use the cash from the sale of BBW & the corporate debt facility to run/build future pipeline this will far exceed the operational earnings from the BBW business.
They need to capitalise on their skill set. They have been developing wind farms for many years and there is no dispute that these products are in demand and there would be no shortage of buyers.
J M O D Y O R
BNB
babcock & brown limited
