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Guy Hands In Solar Power Deal

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/privateequity/8514002/Guy-Hands-in-solar-power-deal.html

Mr Hands, through his Terra Firma private equity house, has spent €100m (£87m) buying 13 solar operating plants in Italy, producing a total of 19MW of photovoltaic energy.

The acquisition is understood to have been made through Rete Rinnovabile (RTR), the Italian solar business Terra Firma bought in March.

Mr Hands promised in March to double Terra Firma's exposure to the sector within five years.

The latest Italian deal – the seller was gas and renewable company Sorgenia – involves the purchase of 12 operating plants located across Southern Italy, and one in Lazio.

Amazing he loses EMI because he can't afford to service the loans, costs the bank $2.2bn and yet he still has a good credit to keep on buying. Imagine if high finance values where applied to normal people, no more bad credit rating and people would throw unlimited cash at you for any hair brained idea. Still it's solar he's bought and it's profitable because of govt subsidy seems like he's on a winner here....

http://online.wsj.com/article/SB10001424052748704278404576037343359005376.html

MADRID—Spain's government approved Thursday a 30% cut to solar-power subsidies that may save around €740 million ($969.3 million), but is also likely to anger international investors in the sector.

Timing is everything in business, he just has to hope other nations don't follow Spains example.

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Amazing he loses EMI because he can't afford to service the loans, costs the bank $2.2bn and yet he still has a good credit to keep on buying. Imagine if high finance values where applied to normal people, no more bad credit rating and people would throw unlimited cash at you for any hair brained idea. Still it's solar he's bought and it's profitable because of govt subsidy seems like he's on a winner here....

Presumably he protected his fortune through limited liability. Like others, ranging from big speculators like him down to ordinary folks working hard to make a go of a one-man-and-his-dog business.

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I did the redemptions on some of the bonds used in his securitisation deals (angel trains, pubs and houses etc etc) when I worked at the same Japanese bank as Guy Hands. I found him creepy.

Edited by tomposh101

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I did the redemptions on some of the bonds used in his securitisation deals (angel trains, pubs and houses etc etc) when I worked at the same Japanese bank as Guy Hands. I found him creepy.

You don't get to "the top" by being nice. Unless perhaps you're born to it.

But I have to confess, Guy Hands isn't my kind of fund manager, either. I have a few squid in private equity, but it's nothing remotely like his kind of business: my money is funding the growth of businesses too small to raise money on the stockmarkets, and wanting more commitment than they get from a bank.

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/privateequity/8514002/Guy-Hands-in-solar-power-deal.html

Amazing he loses EMI because he can't afford to service the loans, costs the bank $2.2bn and yet he still has a good credit to keep on buying. Imagine if high finance values where applied to normal people, no more bad credit rating and people would throw unlimited cash at you for any hair brained idea. Still it's solar he's bought and it's profitable because of govt subsidy seems like he's on a winner here....

http://online.wsj.com/article/SB10001424052748704278404576037343359005376.html

Timing is everything in business, he just has to hope other nations don't follow Spains example.

Presumably we are not responsible for bailing out EU / US banks or Italian government (presumably the one who pays the PV subsidy)? Or are we?

From FT regarding the deal:

http://www.ft.com/cms/s/0/ca126244-dae3-11df-a5bb-00144feabdc0.htm

Terra Firma spends €670m on solar energy

By Martin Arnold, Private Equity Correspondent

Published: October 18 2010 20:17 | Last updated: October 18 2010 20:17

The deal shows that Guy Hands is still able to raise bank financing for new deals even after suing Citigroup over his ill-fated £4bn takeover of music group EMI in a high-profile court case that started in New York on Monday.

,,,,

The financing of the deal was not disclosed but bankers said that solar power generation acquisitions were typically financed with about one-third equity and two-thirds project finance loans.

Rothschild and JP Morgan advised Terna on the deal and Terra Firma’s other advisers were Absolute Energy and Climate Change Capital.

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I thought this was going to be one of those stories where a bloke walks into a Police station with a ww2 bomb he found under his grandads bed.

Which would be silly, as the chances of finding an open police station in this country is off the charts.

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Hands is the high prince of securitisation. No one has done more to establish this insidious activity

He is responsible for the mess that our pub industry is in.

Its amazing that his credit is still good when he and his ilk have screwed over so many businesses by loading them up with debt.

But then again the banks win thrice. First the advice fees, second the fees for issuing the debt and finally the profit when the debt is sold on to investors they are advising.

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Timing is everything in business, he just has to hope other nations don't follow Spains example.

Italy recently did cut solar subsidies too.

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Presumably he protected his fortune through limited liability. Like others, ranging from big speculators like him down to ordinary folks working hard to make a go of a one-man-and-his-dog business.

There is no "Limited Liability" any more for small firms. If you borrow money for business you have to have a personal property to secure against it. If you haven't got that then forget borrowing over £15k. I have been the CEO of a small Limited Company for over 10 years and believe you me the idea that you can borrow on the Company is only applicable if you are generating a £10milllion+ turnover. Of course you can secure some credit on the company from suppliers but that amount has been shrinking since 2007 and is miserly. If I tried really hard I could probably build up £50k of unsecured borrowing against the Ltd Company but not a lot more.

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There is no "Limited Liability" any more for small firms.

Yes there is! If someone were to sue my business for silly money, it can go bust leaving me intact.

If you borrow money for business you have to have a personal property to secure against it.

Oh, that's different! Yeah, that's pretty-much always been the case.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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