Leaf Clean Energy Share Discussion Threads

[flyfisher] 07/10/2015 11:32

The invenergy wind stake could provide a greater value if the clause they recently explained for the teraform sale becomes valid. Potentially $113.3 to $124.8 or up to 62p after tax.

Invenergy wind equity holders prior to the leaf exercise was invenergy 58.8% / la caisse 24.7% / liberty mutual 16.5%.

La caisse bought its stake from invenergy a year or so ago, but the transaction details were confidential, i wonder if book value is based on that transaction ?

[tiltonboy] 07/10/2015 10:57

Plus some residual assets which might amount to a further 8-10p at some stage.

[sharpshare] 07/10/2015 10:25

Shares in issue now 118,162,853

Leaf's investment in Invenergy valued at US$95 million
"Following the conversion into equity we are valuing Leaf's investment using only comparable transactions. "

So value per LEAF share = in region of 80.4c or 53p

"The Operating Agreement provides that after 22 December 2015, Leaf has the option to put its equity interest to Invenergy. The purchase price for such sale is either an agreed upon price between Leaf and Invenergy or the fair market value of the equity interest, as determined by third party independent appraisers. "

So possible 53p cash back to company by Christmas?
(Taxes may be payable.)

Share price today 39p to 41p.

[tiltonboy] 06/10/2015 09:35

ex capital return.

[badtime] 06/10/2015 09:28

Ex capital return today

[badtime] 30/9/2015 14:34

Having said the above that now seems the going price

[badtime] 30/9/2015 13:35

Someone's been done in paying 42

[badtime] 30/9/2015 09:57

Good man...try a couple of hundred k to start with

[hpcg] 30/9/2015 09:51

I might be able to help the seller on his / her way :). It is a much easier calculation for me having no baggage here. The risk of not getting the investment back in short is low, with some upside kickers.

[badtime] 30/9/2015 09:43

I did email sky :)
You can still buy at a smidgeon over 40p

[tiltonboy] 30/9/2015 07:43

There is a seller around at the moment, and it might take a bit more buying to shift him.

[hpcg] 30/9/2015 04:30

39.99p available to buy yesterday.

[papy02] 29/9/2015 10:58

Thanks Tiltonboy - I'd read that and looked for Record date but couldn't see it - my eyes must have skipped over it as the line started with "Redemption".

So I'm afraid I'm incompetent rather than lazy.

[badtime] 29/9/2015 10:57

Whoever paid 43 must be a tad annoyed

[badtime] 29/9/2015 10:56

Lol just about to post that the quoted 39/43 is rubbish..not my fault Advfn post them as sales You grumpy because u lost at home to Rotherham :)

[tiltonboy] 29/9/2015 10:54

They are not all sells!

[badtime] 29/9/2015 10:51

Fair number of sells but price not budging

[tiltonboy] 29/9/2015 10:12

Papy,

You are so lazy! Open the link above and you will find the Record Date is 5th October!

[papy02] 29/9/2015 10:07

What is the Record Date (and/or Ex-date) for the 5p Redemption please.

(or a link to the Shareholder Circular if anyone has that)

Many thanks

[flyfisher] 29/9/2015 09:59

Interesting to read of the put option for the invenergy holding, which if exercised should give a return of 53p in q1 2016, assuming that book value is the same as fair market value.

At todays price of 40p a return totaling 58p within 9 months looks excellent, with a free ride on the remaining holdings.

[pvb] 28/9/2015 20:15

Redemption Announcement:



Final Results:

[tiltonboy] 28/9/2015 18:25

At least we now know what we have got, and hopefully with a bit of negotiation, we can have an acceptable conclusion.

5p to come back straight away, and the possibility of another 55p should, at a minimum, underpin the current price.

[tiltonboy] 08/9/2015 08:28

Nice upbeat comment from Crystal Amber!

[flyfisher] 08/9/2015 07:18

Extract from todays crystal amber results.

Leaf Clean Energy Company (“Leaf”)

When in October 2013 the Fund initially invested in Leaf, the shares were trading at a 45 per cent discount to their then net asset value. In our view, this was the result of a poor investment track record, the scale of annual running costs and the minimal visibility of investments.

Some of these investments are attractive, notably the convertible investment in Invenergy Wind. It was acquired for $40 million and now accounts for more than half of the value of the portfolio. Invenergy Wind is North America’s largest wind power generation company, and has developed more than 8,000 MW of renewable and natural gas power generation and energy storage facilities. Some other investments such as Lehigh should also deliver value.

Following engagement with the Leaf board, the Fund took decisive action to change the leadership of the company. We called an EGM to remove the chairman and the executive director and proposed that Mark Lerdal became executive chairman, with a clear mandate to realise the investments in an orderly manner. An incentive package was agreed, centred on the cash returned to shareholders. Leaf's board agreed the changes, and the new board began steps to realise assets. It cut additional funding to MaxWest, realising a $17.2 million loss. It has disposed of Multitrade Rabun Gap, Multitrade Telogia, SkyFuel and Johnstown Regional Energy realising $8.4 million in cash, only $0.7 million below their carrying value. Running costs have been reduced to $2.5 million per annum. In March 2015, management said it is likely to take two years to realise all its investments.

Over the year and as the share price deteriorated, the Fund increased its position in Leaf from 10 per cent to 29.9 per cent.

The Fund is confident in the value underpinning the Invenergy investment and the ability of the new board to return cash to shareholders. In addition, Leaf is now benefiting from the investor appetite for so called “yieldcos̶1;, entities that acquire and operate income generating assets from developers and operators such as Invenergy. In July 2015, TerraForm announced the acquisition of 930 megawatts of wind power capacity from Invenergy for $2 billion. This deal might set a high valuation for Invenergy and therefore for Leaf’s convertible instrument.

In June 2015 Leaf´s shares traded at a 36 per cent discount to its December 2014 NAV. In our view, the reported NAV understates the value that can be achieved from the sale of the Invernergy stake. The realisation of Leaf’s investments is a well advanced process albeit one of unpredictable timings due to the private nature of the holdings. We are confident that Leaf can return cash to shareholders significantly in excess of its share price.

[spectoacc] 28/8/2015 07:19

Thanks Tilts; long-suffering shareholders would deserve some good news - good luck those still in.