Planet Gore

Undervalued, or Just Not Worth Very Much?

From The Australian:

Babcock & Brown Wind Partners’ largest shareholder has called for the global wind farm owner to be wound up and its assets sold.

 

BBW chairman Graham Kelly said the firm’s directors “agree with TCI that the current BBW security price does not reflect the underlying value of BBW’s wind energy business”.

 

However, Mr Kelly said the completed sale of the firm’s Portuguese and Spanish wind farms has placed it in a “strong financial position”.

 

He said an on-market security buyback underway and plans to establish an in-house wind farm development capability and improve its asset management capability, functions previously supported by Babcock & Brown, should lead to a “more accurate reflection,” of the firm’s value through its share price.

 

But Mr Kelly conceded that ”whilst equity markets remain dislocated and volatile, valuation gaps may persist”.

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