Alterra Power MGMXD

AXY's Shareholders' New Dividend Yield

[BoldForbes]

Perhaps this merger may not be too back for existing AXY shareholders.  Innergex is a larger company in market capitalization and production.  Additionally, if Innergex can continue their dividend of $0.66 CAD, currently a 4.49% yield on the $14.25 CAD stock price, then AXY shareholders could have a significant increase in yield with what appears to be a stable stock.

The numbers below are in CAD $...and assume that INE will continue paying the dividend.

AXY Dividend	0.05	0.66
AXY Stock Price Pre-Acquisition	5.08	14.25
AXY Yield	0.984%	4.632%
AXY Stock	100
Conversion to INE	0.5563	all stock (otherwise you can receive $2.06 in cash on 0.4172 in INE stock)
New INE Stock	55.63
INE Dividend	$       0.66
New Annual Dividend	$    36.72	Old AXY Annual Dividend $5.00
New Dividend Yield	7.23%	Based On AXY Stock Price Pre-Acquisition

But it gets better if you look at your cost basis for the yield instead of the market value.  If you have a stock cost basis of $4.00 or below look at the dividend yield.

AXY Dividend	0.05	0.66
AXY Cost Basis	4.00	14.25
AXY Yield	1.250%	4.632%
AXY Stock	100
Conversion to INE	0.5563	all stock (otherwise you can receive $2.06 in cash on 0.4172 in INE stock)
New INE Stock	55.63
INE Dividend	$       0.66
New Annual Dividend	$    36.72	Old AXY Annual Dividend $5.00
New Dividend Yield	9.18%	Based On AXY Stock Price Pre-Acquisition

Please review my calculations.  I still need to research INE’s management, financials, etc.  I just haven’t had the time…

Bold Forbes

[RDK241t]

BoldForbes sorry if this is a stupid question but how are we guaranteed 8.25 per share once we switch over to Innergex. We are guaranteed $2.06 cash per share but we receive .4172 of Innergex stock for every common share of Alterra. If Innergex is trading low at such time when Alterra stock switches over to Innergex won’t we be getting less than $8.25? Again, sorry if my understanding  of

[BoldForbes]

RDK, No such thing as a stupid question ;) Their appears to be 2 options:  $2.06 and 0.4172 INE or 0.5563 INE share for each AXY share For AXY to be "guaranteed" the $8.25 CAD, the stock price of INE appears to need to get to ~$14.80 CAD.  It has dropped to ~$14.01 to so it needs a 5.7% increase to get there...so it appears AXY will most likely trade in tandem with INE going

[4PCneanderthal]

My understanding is $8.25(all CAD) is the amount based on 27 Oct 2017 prices of $5.21AXY and $14.83INE.  AXY shareholders will get 0.5563 shares by default unless the shareholder requests the $2.06 and 0.4172 shears on a first come first serve basis as the total amount of cash available is limited to $123M.  If INE share price is greater than $14.83 at the time of unification, AXY

[SimplyRunRig]

You are only guaranteed that the value was $8.25 when the deal was made. Did anyone watch  the buyout of ICG (which I think will be nothing like this one)? That deal was valued around 500M when made, but then the purchasing company tanked 40 or 50%. The shareholders that sold shortly after the announcement made out the best. Again, I really don't believe this will be anything like that, I