DEMCO's 4% stake in Wind Energy Holdings.

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What might the value be of DEMCO's 4% stake in Wind Energy Holdings (WEH)? 

As we know and as was re-affirmed at their "SET Oppt." Day" presentation last Monday, WEH will IPO their massive wind energy portfolio as an infrastructure fund by early 2015. 

DEMCO just reaffirmed this in their presentation at the SET stating they already selected the Financial Adviser (FA).

DEMCO owns 4% of  WEH, which they acquired last June 2013, through the 10 Baht per new share rights offering.  As I recall they paid around 850 million  Baht for this 4% WEH stake.  

In MayBank Kim Eng's latest upbeat report today, the analyst does not assign any value of this stake, as of yet. 

Look at SPCG (19.30)  as a fair comparison. This company has a mkt. cap. of 16.2 Bill. Baht and owns 211 MW of green energy power.  By 2015, WEH will have 852MW and so:  16.2 Bill divided by 211 MW times 852 = 65.5 Bill. Baht value, on that comparison.

When I asked the company not so long ago what the value of WEH's infrastructure fund would be next year, I was told around 60 Bill. Baht.

As DEMCO owns 4% of WEH, its share (based on 65.5 Bill Baht estimated value) would so be worth around 2.6 Bill. Baht, or around 3 times more of what they paid to acquire the 4%!

Best Regards,

Paul A. Renaud.