If Canadian Hydro Is Scooped Up, Green IPOs Could Increase

TransAlta Corp.’s (TAC) desire to scoop up Canadian Hydro Developers Inc. (CHDVF.PK) may do more than drive up the price of other renewable energy companies.

Jack Robinson, chief investment officer of Winslow Management Co. in Boston, thinks more green companies could launch initial public offerings as outfits like Canadian Hydro are picked off.

“We may well see other companies go public in the space given this activity,” he said. “I think it is a psychological lift for the whole industry...We’re seeing demand pick up globally.”

Mr. Robinson’s firm owns about 2% of Canadian Hydro, the largest pure-play renewable energy company in Canada. He, like many other investors, thinks TransAlta’s C$4.55 hostile bid is pathetic. (Canadian Hydro is trading above C$5).

TransAlta on Monday will head to the Alberta Securities Commission to try to remove Canadian Hydro’s poison pill, and as it stands now, its bid is set to expire on Aug. 27.

Comments

[jerrydd:]

While Hydro is a great RE source, CHD is rather small projects, assets.

And some of their projects are run of river/kinetic hydro which is a great idea but no one has done it profitably yet. I did a group of them in the 80's and they worked fine. If they can make them work they will be well worth it. If not?

Aug 25 12:51 PM

[A Barrel Full:]

There is a compelling logic for energy companies to buy small green tech players. Doing an IPO before selling out would ensure a better price, as well as more chance of a compeititive takeover battle.

So I think that Jack Robinson is correct.

Aug 26 02:57 AM