GPG is more of a financial investor than a strategy investor. I mean they looking at the financial value of the alinta energy only. So they would like to see their investment of 11 millions dollars turn into 22 millions plus. They are in for mid term. For these kind of financial investors they will not like to see their investment to fall below their purchase price which is around high 7c. So our rights are being protect by gpgs 20% stake somehow.
Victoria is going to shutdown some of the coal fire power stations (hazelwood) and will build new gas and renewable power stations to cover the gap. Also with a carbon price put on the gas fire power station will become cheapest technology available in few years time. So I smell of political shift which will favour alinta in mid term. Remember that most of alintas power stations are gas base. It make alinta more attractive to suitors in mid term.
AEJ Price at posting:
5.4¢ Sentiment: None Disclosure: Held
