Elon Musk has taken a step towards rolling up his different corporate interests, using the high-flying stock of electric car company Tesla Motors to make an all-stock offer worth nearly $3bn for solar power company SolarCity. The prospect of Tesla paying a substantial premium for a company in which Mr Musk is already the chairman and the largest shareholder unnerved Wall Street and knocked nearly 13 per cent from Tesla shares in after-market trading. The $4.1bn that was wiped from Tesla’s stock market value overshadowed a $500m jump in SolarCity’s share price on the news. Mr Musk said that shareholders in both companies would vote on the deal, and that he would abstain from voting both his 21 per cent stake in Tesla and his 22 per cent SolarCity interest. “This would only move forward if there is a majority vote of the non-me shareholders in both companies,” he said. The dent to Tesla’s share price comes in stark contrast to the strong backing Mr Musk has been able to count on from investors up to now when issuing more stock to finance his company’s ambitions expansion. The company raised nearly $1.5bn from a stock sale last month as it scaled up plans for first proposed mass-market vehicle, the Model 3. “My personal opinion is that obviously this is something that should happen — like it’s a no-brainer,” Mr Musk said in conference call on Tuesday afternoon to announce the deal. By adding SolarCity’s solar panel installation and leasing business to Tesla’s electric cars, battery manufacturing and electricity storage, Tesla would become an “integrated sustainable energy company,” he said. SolarCity, run by Lyndon Rive, Mr Musk’s cousin, has had a mixed record since it went public in 2012. It rode a wave of enthusiasm for domestic solar installation as the price of panels fell steadily, sending its stock market value up to more than $8bn by early 2014. However, the credibility of the company’s management has been “at risk” after it “missed [expectations] or guided down multiple quarters in a row,” analysts at Deutsche Bank wrote in a report to investors earlier this year. Its stock price hit a low of $16.31 earlier this year, down from a high of more than $61 a year ago. From the archive From the US to China, solar power is poised to tackle climate change and shake up the electricity industry Folding SolarCity into Tesla would boost both companies, for instance by making it possible to sell solar panel installation through the car maker’s stores, Mr Musk said. The company’s products would also become more tightly integrated, he said. Tesla sells a home electricity storage unit called Powerwall that is also sold to SolarCity customers. The carmaker is building a massive battery plant in Nevada to supply both its electric vehicles and power storage businesses. SolarCity’s customers use the same technology to store excess power produced by their panels. “You’ll be able to go into a store and with a few clicks and a few words get everything from batteries to solar panels to electric cars,” Mr Musk said. Combining the two companies could also boost demands for SolarCity’s services, he added: “Most of our [Tesla] customers have an interest in solar — I’d be shocked if they don’t.” While the all-stock offer came at a low point in SolarCity’s fortunes, Mr Musk said the timing was determined by both companies’ product plans, with Tesla “wrapping up its activities … with energy storage”. He added: “From a consumer experience standpoint, everything will work together really well … It’s a single customer relationship that needs to be maintained, rather than multiple ones.” Related article The planned deal looks like a bailout between two Elon Musk companies that investors will vote down Tesla said it would issue 0.122-0.131 of a share for each share of SolarCity. Based on Tesla’s closing price on Tuesday, that was equivalent to $26.79-$28.77 a share. SolarCity’s shares had ended the day earlier at $21.19. Tesla did not immediately explain how the precise exchange ratio would be calculated. Companies generally use “collars” in all-stock deals to give shareholders in a selling company a degree of downside protection if the share of the buyer falls. Based on the 13 per cent after-house decline in Tesla’s shares, SolarCity shareholders would get stock worth a maximum of $25.10, equivalent to an 18 per cent premium. Source link

The UK’s largest contractor said the government must take advantage of low interest rates and borrow more to fill the infrastructure investment black hole created by the UK’s vote to leave. The Infrastructure 2050 report stated that the falling interest rates made it the “ideal time” to borrow. It added this was “far from being an irresponsible course of action as some maintain”. Question marks have been raised over infrastructure investment post-Brexit, with uncertainty over short-term private and public funding. Balfour Beatty said the Brexit vote would see private investors postponing investment decisions until Britain’s relationship with the EU was renegotiated and said this would put major projects at risk.  Infrastructure like Crossrail 2 and the London Underground upgrades were also likely to be affected by the UK leaving the European Investment Bank, it said. The private sector is to provide 69 per cent (£260bn) of the UK’s planned infrastructure, while the EIB has invested more than £16bn in UK infrastructure projects over the last three years. According to the report, these financing gaps could not be covered by the Treasury alone and other income streams would need to be found. It said: “While a possible recession would mean lower tax receipts for the Treasury, the current low interest rates – predicted to sink even lower – mean that now is an ideal time for government to borrow money in order to finance projects.” Prime minister Theresa May last week pledged more infrastructure bonds available to major projects in a bid to boost infrastructure investment. The Infrastructure 2050 report found skills shortages were a key area in which the government needed to act quickly to ensure the UK’s biggest infrastructure projects could be built. The report urged the government to ensure those workers who had migrated to the UK were able to continue to work here. It said funds available for training the domestic workforce must be retained, despite the economic turbulence created by Brexit. Failure to do so, the report said, would increase construction costs and result in delays to projects such as Hinkley and HS2. The report also came up with a number of recommendations for the government and its various infrastructure operators to ensure that the UK delivers the infrastructure it needs by 2050. These included calls for ensuring future transport investments were robust for automated vehicles, new long-term plans for future rail and aviation projects and a long-term vision for energy policy to provide investors with greater certainty. (See box) Balfour Beatty recommendations include: Government action is needed to maintain economic stability, to provide a timeline for the UK’s exit from the EU and early answers to the many practical questions about doing business during and after Brexit New transport investments need to show that their business cases are robust to new automated technologies Remove existing barriers to young people entering training (i.e.) cost of university, attractiveness of old industries to new, unattractiveness of sector to women and ethnic minorities A far-reaching vision for the national rail network. Including plans for HS3, HS Scotland, HS Southwest, the reinstatement of the HS2 link and Heathrow spur, another Channel Tunnel, a new East Coast line, Crossrail 3 and 4. A full review of aviation capacity review looking at additional runway capacity at Birmingham and Stansted airports Clear long-term vision for energy policy needs to be developed and agreed to provide investors with certainty Government must continue to support the current 16GW nuclear new build programme plus small modular reactor development Government should update its nuclear decommissioning strategy post Brexit to seize opportunities for economic growth in the area Imperative to think about future flood impact when designing and installing new infrastructure Source link

New air quality guide from BSRIA Published:  24 August, 2016 BSRIA has announced the release of a new topic guide on the subject of indoor air quality (IAQ), which is available to download free from its website. The BSRIA Topic Guides are designed to be an at-a-glance publication introducing readers to key industry topics and suggesting further reading. The guide is aimed at those looking for introductory information about indoor air quality including definition, history and prevalence. There is also information on types of contaminants and their exposure limits, as well as providing readers with a useful site map. Commentary is provided by BSRIA’s asset performance team leader, Blanca Beato-Arribas, who said: “People spend approximately 80% of their time indoors. There is enough evidence that links poor air quality with permanent damages to health or even death. Therefore, we should be aware of the quality of the air that we breathe both at home and at work, and ensuring good indoor air quality at work should be a priority for employers.” TG12/2016 ‘At a Glance’ – Indoor Air Quality is now free to download from the BSRIA website for members and non-members alike at www.bsria.co.uk/information-membership/information-centre/bsria-topic-guides/ Source link

On behalf of Huntingdonshire District Council, Savills has been instructed to market office space at Pathfinder House on St Mary’s Street in Huntingdon. The available suite comprises 3,983 sq ft (370 sq m) of Grade A office accommodation on the third floor of the property with Huntingdonshire District Council occupying the rest of the building. The space is being offered at an all-inclusive quoting rent of £111,000 per annum and benefits from shared use of restaurant, cafe and conference / meeting room facilities.  Edward Gee, associate in the business space team at Savills Peterborough, comments: “Situated in Huntingdon town centre, Pathfinder House provides premium office space in a good location with strong transport links. Due to the property’s excellent credentials we expect to receive a good level of interest from a range of potential occupiers.” Source link

Window as well as door manufacturing outlet Polyframe Group Limited took the right decision to seek the advice of a law advisory enterprise called Bond Dickinson LLP in order to see what the building and construction enterprise could do to increase its turnout and annual revenue in the years to come. Indeed, representing the manufacturing business and its main investing mogul Cairngorm Capital, the experts of the rule of law at Bond Dickinson were able to secure a number of lucrative contractual deals that will mean that the company will significantly prosper as the years go on. By conducting its trade deals under a new name known as Customade, the manufacturing company has been blessed with acquiring the opportunity to gain annual revenues that will pass the £100 million mark as well as a greater amount of employees at their ready and more produce to sell to its expanding client base. Thanks to Bond Dickinson’s services, Cairngorm Capital and Polyframe will benefit from the company receiving a major influx of new staff that will total 900 new employment opportunities as well as greater opportunities for the company to increase its variety of windows and doors to an enthusiastic public demand. Having advised them over the last year, it is clear that Bond Dickinson are able and very capable as a law firm in securing major new deals for companies in construction, building or other manufacturing industries to ensure that they grow and expand in the ways that they want to. Indeed, John Naylor-Leland at Cairngorm Capital emphasized that the hard work and lucidity of Simon Pilling and his team at Bond Dickinson helped them immensely over the course of the last few months and is pleased that they as a law firm understood all the pitfalls and angles of securing deals and investment opportunities in the building and construction industry as a whole.