RE:RE:RE:RE:RE:Brookfield does not have access to the booksBSdetector2016 wrote: Canoutchie wrote: jx7000 wrote: pennydredful wrote: If Brookfield becomes involved , given our dire straits , one can be sure they will end up with the long end of the stick and us suckers the short end. Bansky will say "whats in it for me ?"
That's exactly (pretty close) how they bought out IPL a couple of years ago.
What was the premium that Brookfield paid for IPL?
Does anyone remember offhand?
Indeed, investors have soured on AQN management, but I'm intrigued about a possible buyout of existing assets, with the potential acquisition kicking out the existing AQN mgmt, and walking away from the Kentucky deal, and then running the existing assets more efficiently.
I may try and work some math during the slow period over the holidays, as I doubt anything with regards to a possible takeover would occur before then.
Last record I have for IPL is from May 2021 when it was trading around $17.50/sh, after the 1st low-ball Brookfield offer. Actual premium seems to be somewhere in the 14% range.
Under the Revised Brookfield Offer, each Inter Pipeline shareholder has the ability to elect to receive, per Inter Pipeline share, $20.00 in cash or 0.25 of a Brookfield Infrastructure Corporation class A exchangeable subordinate voting share (“BIPC Share”), or, solely in the case of eligible Canadian Inter Pipeline shareholders seeking a rollover for tax purposes, 0.25 of an exchangeable security (each an “Exchangeable Unit”) to be issued by an indirect subsidiary of Brookfield (“Exchange LP”), subject to pro-ration in respect of the BIPC Shares and Exchangeable Units. Among other things, the Notice of Change describes the robust strategic review that preceded the Revised Brookfield Offer recommendation. Based on the results of the strategic review, the Revised Brookfield Offer is the best alternative currently available. The non-prorated $20.00 per share cash offer is approximately 21 percent higher than Brookfield’s original $16.50 per share prorated cash offer.
@bsdetector, thanks for the info share.
I know one shouldn't buy anything on the prospect of a potential takeover, but I'm reflecting on a lot of things here... one of which is that at CAD $9.00 this might be starting to be a bit of a risky short for those who shorted AQN on the way down... especially seeing how quickly AQN reversed the downward price trend with just a hint that they might be able to walk away from the Kentucky deal.
I've been watching AQN ever since early November trying to figure out possible scenarios, but I'm inclined to believe that the existing assets are still good, it's just a question of poor management and problematic financing, all of which could be rectified through a takeover from some larger entity looking to grow assets in the renewable space.
Have a good holiday, folks.