Wednesday, October 07, 2009

Novera in play

If you've got shares in Novera Energy you'll have noticed that they leapt by 32% this morning as the company announced that it had rejected an offer from largest shareholder Infinis to make an offer for the remaining shares at 62.5pence.

Using our Value of ROCs Model, we have valued Novera's assets, and applied a weighting of 100% to operational projects, 75% to projects under development, 25% to approved projects and 10% for projects in planning. We reach an asset value of around £312 million, and according to the last accounts, there is net debt of £112 million, making the net asset value £200 million or around £1.40 per share!

Even if Infinis is atttributing no value to the wind portfolio, the asset value of £244 million would justify a share price of more than 90p/share. We're holding on.

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