Unfortunately Skeoch could be correct. EWC refuse to tell the...

Unfortunately Skeoch could be correct. EWC refuse to tell the price at which the Indonesians have the option to buy the assets in 2022. The price could be $1 or it could be $100m. GE told the 2016 AGM that the concession was a BOOT scheme. (Despite the scheme being reported as a BOO scheme). The "T" stands for transfer, where the scheme is transferred back to the state,usually at a peppercorn price of $1. This theory is supported by the depreciation schedules and the pension assumptions for the Indonesian assets. Pension liability is cut off at 2022. The assets will be fully written off in 2022. The terminal value in 2022 would not be zero if the auditors believed the concession had any value.

However, a counter argument is that it seems unlikely that the power extensions would have been completed only to transfer in 2022. Perhaps the answer is in the PSC associated with WASAMBO.

Nonetheless if EWC does not control a gas supply then Sengkang will be stranded. If they do not have to transfer the power assets then there is a deal between the gas owner and the power owner on the table, but it is likely to be less profitable. If they transfer the plant, then there will be nothing left as ewc with not have any cards to play.

this is why I believe the non disclosure of the option is a material non disclosure and GE selective disclosure is in effect insider information.

But hey...there is always abbot point, a Hong Kong listing, a deal with Tokyo gas, or of course the Philippines.