Call for B&B Wind to be prepared for sale

Adelaide Advertiser
Saturday 28/3/2009 Page: 81

A MAJOR shareholder of renewable energy firm Babcock and Brown Wind Partners Group has called for the former Babcock and Brown satellite to be broken up so investors can claw back value. The Children's Investment Master Fund, which owns a 14% stake in BBW, is concerned that its securities continue to trade at a substantial discount to asset value, despite BBW's separation from B&B, which has gone into administration. "Such value gaps are not uncommon for many listed small cap, illiquid assets, given weak equity markets," TCI said yesterday.

"In our view, this value gap is likely to persist while BBW remains a listed entity and can only be closed through a private market transaction, or series of transactions, leading to the ultimate sale of BBW." BBW board's should crystallise and maximise security holder value as soon as practicable by testing market appetite for the assets and moving to their eventual sale, TCI said in its letter to BBW investors.

BBW operates 41 windfarms in the Asia Pacific, Europe and North America. BBW chairman Graham Kelly said directors agreed the price of BBW did not reflect the value of its business.