Renewable Eng. Share Discussion Threads

[rjmahan] 18/10/2015 17:32

Flyfisher wont be leaving interest rate swaps behind - integral to wind assets - tax shield from debt and long duration of asset.

Probably just leaving risk of litigation associated with old company - can't see anything definitive they are leaving...

[flyfisher] 17/10/2015 08:21

rjmahan, Thanks for that. I also bought in recently, with some reservations.

Why are they only buying the assets of the company and not the company, what potential landmine are they leaving behind ?

Is it the fx hedges and int rate swaps.

[rjmahan] 16/10/2015 23:54

Praipus - that was put out in a hurry, I have made a few edits / enhancements now...

- All gets the traffic figures up - www.deepvalueinvestments.wordpress.com

[praipus] 16/10/2015 17:27

Many thanks rjmahan.

[rjmahan] 16/10/2015 15:57

Praipus you asked me what I thought of WIND on WAM.

I looked into this and I think its a fantastic opportunity.

At 58p not much - at 50p when I bought lots - very low risk good merger arbitrage opp...

Assets worth probably £75m, if not more - so management will get this away at this price if they can.

If it fails down to 38p -12p loss, if we win 10p gain, but probabilities stacked in our favour.

More on the blog...

hxxps://deepvalueinvestments.wordpress.com/2015/10/16/wind-merger-arbitrage-opportunity-low-risk-20-upside/

[praipus] 15/10/2015 10:30

TIDMWIND

RNS Number : 7415B

Renewable Energy Generation Ltd

09 October 2015

Renewable Energy Generation Limited ("the Company" or "REG")

Approach for business and assets

The Board of Renewable Energy Generation Limited announces that it has received a non-binding approach ("the Offer") for its trading subsidiaries, representing the business, assets and undertakings of REG ("the Assets"). For the avoidance of doubt, the approach is not an offer to acquire the ordinary share capital of REG.

The Offer, which is subject to due diligence, would generate an estimated net cash distribution of around 60p per share representing a premium of 61% to the closing share price of a REG ordinary share on 8 October 2015. The Board view the potential buyer as a highly credible, fully funded, counterparty able to implement the Offer through a streamlined and timely acquisition process.

The Assets include the net debt of the Group, which at 30 September 2015 comprised GBP10.5 million being GBP26.0 million of debt, GBP2.7 million of restricted cash and GBP12.8 million of unrestricted cash.

The Offer envisages that at the closing of the transaction, certain subsidiaries within the Assets will be acquired by a new company formed by the executive management team of REG. Consequently as the Offer has the involvement of related parties, it is being considered by the non-executive directors of REG (the "Independent Directors") in consultation with their advisers.

Shareholders should be aware that, in the event the transaction proceeds, it would be the intention of the Independent Directors to also put forward proposals to cancel REG's admission to trading on AIM, to place the Company into members' voluntary liquidation and thereafter to return available cash to shareholders.

The transaction would constitute a fundamental change of business for REG, in accordance with Rule 15 of the AIM Rules, and would therefore be subject to the consent of REG shareholders in a General Meeting.

The Offer will result in a delay to the publication of REG's annual results, from the previously announced date of 2 November 2015.

This announcement does not relate to an acquisition of the Company's shares and as such does not commence an offer period under The City Code on Takeovers and Mergers (the "Code"). A business and assets sale is not governed by the Code.

A further update will be provided in due course.

For further information please visit www.renewableenergygeneration.co.uk or contact the following:

Andrew Whalley
Chief Executive Renewable Energy [phone]
Officer Generation Ltd 796
David Crockford Renewable Energy [phone]
Finance Director Generation Ltd 796
[phone]
Bobbie Hilliam Cenkos (Broker) 8900
Smith & Williamson
Corporate Finance
Limited (Nominated
Adviser and Financial
Martyn Fraser, Adviser to the Independent [phone]
Sara Thompson Directors) 2213

This information is provided by RNS

The company news service from the London Stock Exchange

END

[praipus] 09/10/2015 16:24

PPG? good luck

[petersmith3] 09/10/2015 15:07

PPG – Plutus Powergen the easy next 10 bagger!!!!!

The chairman of PPG said that each 20MW site would generate about £1.6m - £1.7m in revenue. EBITDA given as £1.25m - £1.5m.

10 sites on that basis = £16-£17m revenue with EBITDA of £12.5 - £15m.
Therefore possibly £3m-£4m conservatively annual profits depending on the ultimate revenue split ?.

On a p/e of 15 that's £45-£60m m/cap or 8p - 10.5p/share.

Given that's it's growing, his further comments were - 'really smash the 3 year target for 10 sites' and they have already 1 year behind them.

If those targets are smashed and as they do have 500MW of sites in the pipeline - on the same p/e the share price could see 20 - 27p.
We do know that they plan to own some sites outright at 100% which again would improve the margins significantly.

Ultimately also what do they do with that profit and they could expand into other avenues - was there not talk of this in some other countries ?

Called it a compelling investment, fully funded and no further dilution to the shareholder base.

571.43m shares in issue and 49.5% held by management/Paternoster (Charles Tatnall himself having 9.71%).

Chelverton Growth Trust PLC was accumulating and just 7 weeks ago had increased to 33.33m shares or 5.83%.

Free float will reduce all the time and one thing to remember with no more placings it could become difficult to trade in/out and regain your holding.

[praipus] 09/10/2015 13:26

Offer (if it happens)

[praipus] 25/9/2015 17:02

Agreed, curious that Ecofin increased their holding in August.

[topvest] 25/9/2015 15:03

All pretty depressing reading. Probably good value remaining in their existing consented portfolio, but the future looks impaired on new developments. What next?

[praipus] 17/6/2015 23:07

"changes to the Renewables Obligation regime. A further update will be provided in due course following publication of the proposed changes by the Department of Energy and Climate Change."
From recent RNS.

[hybrasil] 17/6/2015 10:23

why is this continuing to fall?

[wirralowl] 22/5/2015 12:01

I've also been looking at WIND as a potential investment. The price against the assets seems to suggest its undervalued, and the income is now looking reasonable at this price.

However, my worry is the Conservatives stance on wind power, especially onshore. Is there a danger that many of the pipeline applications will now not be given the green light?

[hybrasil] 19/5/2015 08:49

praipus

Is this now interesting at these prices?

[praipus] 10/3/2015 11:07

Utilico reducing


Perhaps the z's possibility is why Utilico reduced? Or using the tax loss?

[praipus] 30/1/2015 14:39

Results for the six months to 31 December 2014 to be posted on Monday 9 February 2015.

[praipus] 30/1/2015 14:36

Flag counter added to header today.

[praipus] 30/1/2015 14:20

More clean energy being lined up :)

[praipus] 19/12/2014 09:24

Approx 30% increase in generating capacity ok'd by Welsh loacal authorities.

[praipus] 16/12/2014 16:37

Henderson out crude oil turning up? Relief rally?

[praipus] 26/11/2014 19:29

Power Generation increasing :)

[praipus] 03/11/2014 17:06

Investors getting out?