REFILE-JPMorgan sees immediate value in EcoSecurities buy
(Refiles to add Masters' first name in third paragraph)
* EcoSecurities buy to help JPM clients manage price risks
* JPM commods head "happy" even if just pre-2012 portfolio
* New EcoSecurities CEO to be named soon
* EcoSecurities will not be integrated into JP Morgan
LONDON, Nov 3 (Reuters) - JP Morgan's JPM.M acquisition of clean energy project developer EcoSecurities (ECO.L) will help its clients manage commodity price risks, even if the investment has a shelf life of only three years, JP Morgan's head of global commodities said.
A 105 pence per share offer by Carbon Acquisition Company, a wholly-owned subsidiary of JP Morgan, was declared unconditional on Monday after reaching shareholder acceptances of over 80 percent. The offer values EcoSecurities at 129 million pounds ($211 million).
Blythe Masters said the decision to buy EcoSecurities was based on its large pre-2012 portfolio of carbon offsets (estimated in August at around 100 million tonnes), its post-2012 portfolio (around 125 million) and any upside associated with a surge in carbon prices.
"Even if only the first source of value inherent in our valuation of the company, i.e. its pre-2012 portfolio, were the only thing to come forth we would end up being very happy with our acquisition," Masters said in an interview late on Monday.
EcoSecurities invests in clean energy projects registered under the Kyoto Protocol's Clean Development Mechanism (CDM).
But with the Kyoto Protocol set to expire at the end of 2012, investors, already shaken by the global economic downturn, are moving to the sidelines while policymakers scramble to agree a successor treaty. [ID:nLN276794]
Under this $6.5 billion CDM, companies invest in projects in emerging nations like China and India, and receive offset credits called Certified Emissions Reductions (CERs) that can be sold for profit to firms looking to meet emissions targets.
CER prices <CER/RTR> hit a 2009 high of nearly 14 euros ($20.68) a tonne last Friday, but are still well below their all-time high of over 23 euros hit in July 2008.
