# Boralex (TSE:BLX)



## leeder (Jan 28, 2012)

I am just wondering what people's view is on Boralex. The company recently initiated a 13-cent quarterly dividend (about 4% yield). Due to the start of the dividend pay out, there was a bit of a run up in the stock. However, at P/CF of about 10-11x and P/B of about 1.4x, the valuation still seems reasonable. It's in the renewable energy space (specifically wind, hydroelectric, thermal, and solar), with assets in Canada, US, and France. Does anyone own this? If so, how are you feeling about this company's outlook?


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## humble_pie (Jun 7, 2009)

i've owned boralex in the past but have not thought about the company for several years now.

boralex was spun off from Cascades paper, which was the entrepreneurial empire built up by the 3 legendary Lemaire brothers of kingsey falls in the eastern townships/beauce region of quebec.

the location name says it all, even 50 years ago the original paper mill was obtaining its own hydro from the waterfall on the Nicolet river. In the beginning, cascades paper was a recycling producer, reworking end runs & other leftovers from other paper mills. It remains a major recycler today.

throughout, as the company's success spilled over into new england & france, cascades operated its own hydroelectric division, relying as little as possible on the provincial hydro utility. Eventually the cascades power division would spin out as Boralex.

i think i might worry about executive succession at Boralex. As i recall, the company was the special project of youngest Lemaire brother Alain. It appears now (looking at the current management team) that two of Alain's children currently hold top executive positions, including CEO.

i think it's fair to wonder if the next generation of family members will necessarily have the authentic business smarts of the original 3 brothers.

interestingly, an outsider has succeeded as CEO of cascades itself, taking over the reins from the founder Lemaire brothers.

but Boralex continues to be managed & controlled by the dynasty; i'd have to research much further in order to get a sense of whether the junior Lemaires are a good thing for Boralex or whether there might be a tinge of nepotism here.

in case you might be interested, here's a recent cascades news release summarizing cascades' history, on the occasion of its 50th anniversary this year:

http://www.cascades.com/en/media-ce...eals-its-50th-anniversary-activities-schedule


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## Nemo2 (Mar 1, 2012)

humble_pie said:


> i think it's fair to wonder if the next generation of family members will necessarily have the authentic business smarts of the original 3 brothers.


This reminded me of a (supposed) quote by an anonymous staff member regarding the sibling heirs who oversaw the downfall of the Eaton chain......"Three boys, one brain".


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## gardner (Feb 13, 2014)

It seems they have bought some new wind farms in Quebec and France and are funding with some new equity.

https://finance.yahoo.com/news/boralex-announces-agreement-acquire-invenergy-195700613.html



> * Acquisition of interests in 5 wind farms in Québec totaling 201 MW
> * 4.8% increase in annual dividend per share to $0.66, the second increase in 2018 for a total 10% increase in annual dividend per share
> * Boralex increases its growth target


And in a separate deal, picking up 163 MW of wind power projects in France.

They are issuing stock at $20.20 via subscription receipts.


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