jv to be signed april 18, page-8

This is a nice jump and hopefully just a beginning of the repricing of CBD.

According to the letter to shareholders by Gerry McGowan, posted after the slightly disappointing Dec 10 results were announced, CBD will be vending its wind interests into this joint venture.

Joint venture financial structure will be stapled entity comprising of a company and a development unit trust, and although it does not say in the media release, I believe the trust will be listed on ASX or some other stock exchange (say Shanghai?), possibly on both.

So, being an optimistic sort of the guy, I would imagine that the CBD shareholders will be receiving some of the stapled securities being created as a consideration for the value they are contributing to the JV or at least very least be will be offered a substantial discount on the new securities to be floated or both.

I would hope that the company will not do Johny Howard Telstra style float, where you get offered to buy something that you already own.

I will be organizing some ready cash to be ready to respond when the details will be announced, as I expect that some cash will be needed to fully exploit the new float.