Cascade acquisition deemed fair and reasonable

Report Date: 24 February 2011

Analyst Details
Company: Southern Cross Equities
Analyst: Fleur Grose

Summary

The Independent Expert has found that the acquisition of Cascade Coal at $486m is at the low end of its $459m to $587m valuation range. We believe that this range is conservative, and there should be even further upside. Despite delays ramping up the upgrading plant in Indonesia, which could take at least another 6 months to fix, WEC remains undervalued and we retain our Buy rating.