Indian Energy Share Discussion Threads

[htrocka] 22/7/2011 20:06

As previously stated..I`ll go along with them for twelve months..and see how this pans out. Guggeneim seem to think buying IEL was good idea.















an extract from the above.(dated Feb 2011..the last paragraph)
`In particular, following the generation of predictable revenues from the Company's existing investments as well as from the interests acquired in IHDC and VLMS, the Directors and the Proposed Directors intend to give appropriate consideration to the commencement of the payment of a regular dividend, which is anticipated to be within the next 12-24 months, subject to the availability of an appropriate level of distributable reserves, the Law and the Articles. Any such decision will be based on the intention of the Board to start generating an income stream for investors in the Company, while ensuring the retention of an appropriate level of earnings consistent with the management of the Company's activities.

[htrocka] 22/7/2011 19:54

It`s in the rns...it looks as if the majority are movig over to IIP.


Application will be made to the London Stock Exchange for the New IIP Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings on AIM (for normal settlement) will commence at 8.00 a.m. on 21 September 2011, the first Dealing Day after the Effective Date.

[naviskram] 22/7/2011 16:37

Just received a message regarding suspension of shares on the market and an issue of new shares??/ any body know whats going on?

[htrocka] 22/7/2011 06:34

Dr.Know.. I think the Intis`s and ditectors, who bought in at 80p, will view this as a good outcome....the johny-come-lately/ fast buck merchants who bought in circa 25p AND MADE MONEY seem to be the ones griping.

[oliversanvil] 22/7/2011 04:12

19 July 2011

In a fact sheet released July 19, the U.S. Department of State announced five major areas in which the United States and India will be cooperating on issues involving clean energy, energy security and climate change.

For example, plans are moving forward to establish a Joint Clean Energy Research and Development Center that will conduct cooperative research on solar and biofuels, and the United States is working with India to accelerate India's deployment of clean energy technologies. Both countries anticipate finance and insurance support of hundreds of millions of dollars toward clean energy projects that target India - projects such as renewable and clean technology, biomass, and wind and solar power projects.

[dr knowledge] 21/7/2011 23:16

htrocka..."a year down the line and this may turn out to be a good investment...."

Perhaps so, but for me one of the worst "deals" in terms of structure and timing I've yet to encounter! Follow IIP after Guggenheim put a good few million into the co but my beef here is this.........with the time delay and the direct correlation between IIP's share price and ergo "value" for poor old IEL holders, anyone with a brain will see that the incentive to buy IIP is gone! The 31p only holds good if the share price of IIP remains steady or rises - otherwise, why buy and if it falls, why buy IEL??? A double disincentive with weeks to go to let any market drip take hold to boot! The market gave this ill conveived and dreadfully executed deal the only possible verdict -i.e a more or less immediate drop in IIP, followed by that of IEL. Also, the NAV may well at some point go up as a consequence of the acquisition, but right now it's dilution. if I were a holder here I'd be extremely p...ed off, antother AIM share that promised the world and has delivered nothing to shareholders.

Ps. Good luck to holders none the same! ;-)

[htrocka] 21/7/2011 22:26

ps a lot of 25000 buys today?


a strange Number to buy...in view of the IEL/IIP swap being 259 IEL for 100 IIP. One would have thought that buyers would have gone for 25900 IEL shares, giving them a round 100 IIP shares....but even so, If, as stated, the NAV of IIP increases from its current level after the deal, any one buying 25000 IEL @27p...will make a quick £1k (better than cash in the bank)


It`s also a comforting to know that UTILICO are happy to convert their £2.7m (with interest) loan into IIP shares @80.3p....


a year down the line and this may turn out to be a good investment....

[baldeagle5] 21/7/2011 21:20

A cash trumper at 34-35p is expected from the other 22 parties who are/were involved in final stage DD.

[oliversanvil] 21/7/2011 18:55

Never take the First Offer! IP has obtained irrevocable undertakings to vote
in favour of the scheme of arrangement (via which
the offer is being undertaken) from:
(a) the directors of IEL in respect of 1,742,519 shares
representing c. 6.83% of the existing share capital
of IEL; and
(b) Utilico Emerging Markets Limited ("Utilico") in
respect of its holdings at the Voting Record Time
(as defined in the announcement of the offer issued
by IIP and IEL on 21 July 2011). Utilico currently
holds 5,197,792 shares in IEL, representing c.20.38%
of the existing share capital of IEL.

ps a lot of 25000 buys today?

[gamma99] 21/7/2011 17:26

look at the directors dealing level in sep last year 31p!! So they get out flat and will have to commit to IIP to keep their jobs. I think they must be holding on for a higher all cash offer. Or am i too cynical.

[htrocka] 21/7/2011 13:22

oliver...I`m going to go with the new lot....you never know, this time next year, it might equate to 60p per/share.(once the dust settles)

[ianbrewster] 21/7/2011 12:00

IIP didn't seem to like the deal - down 7%

[oliversanvil] 21/7/2011 08:03

May not have got your 60p today but worth keeping new shares til!

[oliversanvil] 21/7/2011 07:37

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION

21 July 2011
SPOT ON HT.


Recommended share offer for Indian Energy Limited ("IEL") by Infrastructure India plc ("IIP")

The Boards of IEL and IIP announce that they have reached agreement on the terms of a recommended share offer by IIP for the entire issued and to be issued ordinary share capital of IEL. It is intended that the Offer be implemented by way of a scheme of arrangement under Part VIII of the Guernsey Companies Law.

Summary

· The Offer will be made on the basis that, upon the Scheme becoming effective, IEL Shareholders will receive 100 IIP Shares for every 259 IEL Shares. No fractions of New IIP Shares will be allotted.

· The Offer values the whole of the currently issued and to be issued share capital of IEL at approximately £7.9 million.

· The Offer is based upon a value of 31 pence per IEL Share, which:

(i) represents a premium for IEL Shareholders of 50.5 per cent. based upon the average Closing Price of an IEL Share for the five Dealing Days immediately prior to the commencement of the Offer Period of 20.6 pence per IEL Share; and

(ii) represents a premium for IEL Shareholders of 21.6 per cent. based upon the Closing Price of IEL on 20 July 2011, being the last Dealing Day prior to the publication of this announcement, of 25.5 pence per IEL Share.

The Closing Price of an IIP Share on 20 July 2011, being the last Dealing Day prior to this announcement, was 80.38 pence per IIP Share.

The IEL Directors, who have been so advised by Arden Partners, consider the terms of the Proposal to be fair and reasonable. In providing advice to the IEL Directors, Arden Partners has taken into account their commercial assessments.

The IEL Directors intend to recommend unanimously that IEL Shareholders vote in favour of both the Scheme Resolution to be proposed at the Court Meeting and the Utilico Resolution to be proposed at the EGM, as they have irrevocably undertaken (without the scope for this obligation to fall away in the face of a competing offer) to do in respect of, in aggregate, 1,742,519 IEL Shares in which they are interested, representing approximately 6.83 per cent. of the existing issued share capital of IEL.

· IIP has also received an irrevocable undertaking from Utilico to vote in favour of the Scheme Resolution to be proposed at the Court Meeting in respect of 5,197,792IEL Shares, representing approximately 20.38 per cent. of the existing issued share capital of IEL. Utilico will not vote on the Utilico Resolution as a result of its interest in the Utilico Loan Conversion.

· Accordingly, in total, IIP has received irrevocable undertakings to vote in favour of the Scheme Resolution in respect of 6,940,311 IEL Shares representing approximately 27.21 per cent. of the existing issued share capital of IEL.

Commenting on the Proposal, John Wallinger, Chairman of IEL, said:

"We are delighted with the announcement of the Offer today, which is the result of an intensive process undertaken by IEL to secure the future of the business and deliver the best value for shareholders. The Offer will give Indian Energy's shareholders an interest in a larger, more diversified portfolio in the fast growing Indian infrastructure segment through IIP. We believe that this Offer will result in a significantly enhanced offering for our shareholders and an opportunity to strengthen the business through the scale, reputation and resources of IIP."

Commenting on the Proposal, Tom Tribone, Chairman of IIP, said:

"We are pleased to be acquiring IEL as it increases our exposure to the rapidly growing Indian renewable energy market. IEL has built a strong portfolio of assets together with a solid operational platform from which to leverage. We look forward to working with IEL's accomplished team and providing the necessary support to realise the full potential of the IEL business."

The Offer will be implemented by way of a scheme of arrangement under Part VIII of the Guernsey Companies Law and, in order to approve the terms of the Offer, IEL Shareholders will need to vote in favour of the Scheme Resolution to be proposed at the Court Meeting. At the Court Meeting, the approval of a majority in number of those IEL Shareholders voting (in person or by proxy), representing at least 75 per cent. in value of the IEL Shares in respect of which votes are cast (either in person or by proxy) will be required. Once the necessary approval has been obtained, the Scheme will become effective upon sanction by the Court of the Scheme and satisfaction (or waiver, where possible) of the Conditions.

It is a condition of the Offer that IEL Shareholders, other than Utilico vote by a simple majority in favour of the Utilico Resolution to be proposed at the EGM (either in person or by proxy). If it is not passed, then the Offer will, with the consent of the Panel, lapse and the Scheme will not proceed.



An indicative timetable of principal events is set out below. Please note that these dates are indicative only and will depend, among other things, on the date upon which the Court hears the application to convene the Court Meeting and the date on which the Court sanctions the Scheme.



Event


Time and/or date

First Court hearing (to convene Court Meeting)


9 August 2011

Scheme Document sent to IEL Shareholders


by 12 August 2011

Court Meeting and EGM


2 September 2011

Suspension of trading of IEL Shares on AIM


7.00 a.m. on 20 September 2011

Second Court hearing (to sanction the Scheme)


20 September 2011

Admission of New IIP Shares to trading on AIM and cancellation of trading of IEL Shares on AIM


8.00 a.m. on 21 September 2011

Fairfax is acting as financial adviser to IIP and Arden Partners is acting as financial adviser to IEL.

This summary should be read in conjunction with the accompanying full text of the announcement which sets out further details of the Proposal and which forms an integral part of this announcement. The Offer will be subject to the Conditions set out in Appendix A. Appendix B contains details of the bases and sources of certain information used in this summary and the following announcement. Appendix C contains details of irrevocable commitments obtained by IIP. Appendix D contains definitions of certain expressions used in this summary and the following announcement.

In accordance with Rule 19.11 of the Code, a copy of this announcement will be published on the following websites: www.indian-energy.com and www.iiplc.com

For the avoidance of doubt, the content of the websites referred to above is not incorporated into and does not form part of this announcement.

Enquiries:

Indian Energy Limited


Tel: [phone]

Rupert Strachwitz









Arden Partners Plc (Financial adviser, broker and Nomad to IEL)


Tel: [phone]

Chris Hardie / Jamie Cameron






Pelham Bell Pottinger (Public Relations to IEL)


Tel: [phone]

Clare Gilbey









Infrastructure India plc


Tel: via Redleaf Polhill

Sonny Lulla









Fairfax I.S. PLC (Financial Adviser to IIP)


Tel: [phone]

Simon Stevens









Smith & Williamson Corporate Finance Limited (Nomad and joint broker to IIP)


Tel: [phone]

Azhic Basirov / Siobhan Sergeant




Westhouse Securities Limited (Joint Broker to IIP)


Tel: [phone]

Alastair Moreton / Hannah Young






Redleaf Polhill (Public Relations to IIP)


Tel: [phone]

Samantha Robbins / Luis Mackness






Fairfax, which is authorised and regulated in the United Kingdom by the FSA, is acting exclusively for IIP and no one else in connection with the Proposal and will not be responsible to anyone other than IIP for providing the protections afforded to clients of Fairfax nor for providing advice in relation to the Proposal, the contents of this announcement, or any transaction or arrange

[htrocka] 20/7/2011 20:18

rns tomorrow....the 21st.

[showmethehoney] 20/7/2011 07:45

Results not today then! Well their financial calendar does say 'ESTIMATED DATE'.

[dshox1] 17/7/2011 20:23

true. it could be an update, or could come in before Wed! unless they deliberately sign the deal on the day.

[htrocka] 17/7/2011 13:44

another minor point...I doubt we`ll get the outcome of the settlement on the 20th....as this being price sensitive information would have to be released to the markets immediately...as and when it occurs...but at least they`ll give us a run down..( appologies... I meant an update) of the situation going forward.

[dshox1] 17/7/2011 10:14

I don't think the article is well written - confusing and mixed up messages. The author should've pointed out that the full year loss in the year ending 2010 was excarbated by exceptional items (float costs). I don't agree that IEL is heading for a full year loss either, since Theni is now online, operational costs halved, and exceptionals removed from the equation.

[htrocka] 16/7/2011 09:19

(the article is slightly out of date...in view of the fact that the loan facilty was extended to £.2.5m...repayable July 2012)

Another point I found interesting is that the UTILICO`s loan was used NOT as operating overheads...but for expansion purposes...,which MUST be repaid from existing production revenues.. Hence these £2m quids worth of `options`(...no doubt the £0.5m increase was utilised in running costs...my opinion only).....MUST now be cassified as `assets`...and integrated into the final negotiated valuation.

extract from the above ..
`Indian wind farm developer Indian Energy has arranged a £2 million loan facility to help it secure options over further wind projects in the country`

For ULTICO to have advanced, then increased the loan, must have been concidered as a viable risk. My bet is that the second phase of the THENI project has moved up a gear...soas to finalise it to the original contracted 50M/W output...in view of the following statement from the Company`s website
quote..
`The Theni project in Tamil Nadu (16.5M/W) was fully commissioned in August 2010 and
following the stabilisation period has been operating during October 2010 in
excess of the Company's expectation`(phase I was 16.5M/W....phase 2, was put on `hold`)


.....However the article specifies `country`...which may or may not be the same district....therefore could also be the construction of the 50.4 MW wind farm project secured at Tejuva, Rajasthan. ..but with THENI generating £435k in CER`s p/a...this look favourite.



In any event...an interesting week in the offing. (If it turns out to be a complete buy-out/take over...I hope we`re not paid in Rupees)

[htrocka] 16/7/2011 09:04

We`re now on the home run...and the winning post is in sight...


(It`s been posted before...but for the newcomers...)


First published in Cleantech magazine, January 2011. Copyright Cleantech Investor 2011

By Andrew Hore
It is a sign of the fragmented nature of the wind power sector in India that Indian Energy's first project alone puts it in the top 60 largest wind energy generators in the country.

Indian wind farms developer and investor Indian Energy joined AIM on 2 September 2009. A placing raised £9.75 million at 82p a share, valuing the company at £20.3 million and helping to finance Guernsey-registered Indian Energy's growth. The costs of the flotation were a hefty £1.15 million.

Indian Energy was founded by managing director Rupert Strachwitz and Dr Pankaj Agarwal in 2006. Strachwitz has a background in private equity, while business development director Dr Agarwal has experience in the development and commercialisation of new renewable technologies.
The Gadag Plains project in the state of Karnataka was already up and running at the time of Indian Energy's flotation. Fully commissioned in February 2009, the project should produce 55.8 million kWh of electricity each year. However, this year the region experienced poor winds during the monsoon months, which meant that 25% less power was generated than expected.

According to Indian Energy, its 16.5MW wind farm at Theni in Tamil Nadu started supplying power to the grid in October, generating approximately 17.85 million kWh of energy for the period to the end of October. Although generation started later than hoped, the performance has been better than expected.

All this means that Indian Energy's figures for the year to March 2011 will not be as good as previously expected, with the anticipated loss higher than had been forecast.

The company wants to own wind farms with a capacity of 300MW by the first quarter of 2013. It has signed memorandums of understanding with Regen and Suzlon for a total of 250MW of capacity, but financing that capacity is likely to be a problem. More cash will need to be raised in order to get a third project off the ground.
Indian wind farm developer Indian Energy has arranged a £2 million loan facility to help it secure options over further wind projects in the country. The firm has plans to expand its operating portfolio from its current level of 41.3MW to 300MW by 2013.

The loan facility, with Utilico Emerging Markets, will bear interest at 10% per annum initially, rising to 12.5% from January next year, and will be repayable by the end of July 2011.

News of the loan facility came after Indian Energy announced an increase in revenues for the year to 31 March 2010. Turnover doubled to £2.2 million, although the firm's loss before tax also increased to £3.6 million (2009: £1.4 million).

At the end of March Indian Energy had cash of £3.7 million, while its net debt was £7.8 million. The firm floated on London's Alternative Investment Market in September last year, raising £9.8 million.

The company's strategy is to acquire wind farms at their pre-construction phase. These projects have land already secured and key permits in place, so the majority of the development risk has been mitigated.

Indian Energy successfully commissioned its first wind farm, a 24.8MW development at Gadag in Karnataka, in February 2009. The firm's second wind farm is a 50MW project at Theni in Tamil Nadu.

Theni's first phase consists of 16.5MW of turbines, and this due for completion during the next few weeks. The second phase – consisting of 33MW of turbines – was originally scheduled for completion by the end of this year.

Indian Energy has contracted to sell the power from its existing projects to state electricity boards under long-term power purchase agreements for up to 20 years.

Indian Energy's revenues are estimated to increase to £3.1 million during this financial year, while its pre-tax loss is forecast to come in lower at £1.2 million.

Market: AIM
Symbol: IEL
Price: 44p
12 month high/low: 86.5p/44p
Market cap: £11.2m

[dshox1] 15/7/2011 20:35

moving up nicely now and consistently

[oliversanvil] 14/7/2011 15:11

Easing up!