Originally Posted by
Zeitgeist
Retail certainly exposed to disruption and competition. Generation is not insulated from disruption, refer Lake Onslow scheme.
The announcement is specifically about retail yes but a sale of that segment would possibly open up the residual generation business to sale/takeover too.
TPW current market cap = $2,650,000,000
To 31.03.2020 retail comprised $35.3m of $186.5m EBITDAF or ~ 20%. Make a few rash assumptions that market cap is reduced by 20% following a sale of retail leave total enterprise value of the generation business at around $2.1bn. That's a large potential transaction for someone, but achievable for foreign investors or even some of the existing operators with larger balance sheets. It's only around 10% of Meridian's market cap for instance....