OTCPK:ICPVF - Post by User
Comment by
firstworldon Mar 06, 2021 4:07pm
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Post# 32736952
RE:Should you Accept the Offer or Not??
RE:Should you Accept the Offer or Not??Buy the dept, call in the loans, push to foreclosure and buy for $.20 on the dollar. Oh wait, Canada is now communist socialist nationalist country and free markets are not allowed hahah quote=Fantome]In a word......NO
While the financial position of IPL has worsened since the previous takeover offer due to the sale of the European Storage business combined with delays and cost overruns at Heartland and the search for JV partner for Heartland....all of which reduces the expected future DCF from the earlier levels.....a fair market valuation of IPL is still in the mid 20s.
Based on my math...the Brookfield cash offer undervalues IPL by somewhere between 40 and 60%.
One thing to keep in mind though is that in the event that there is no competing bid for IPL and not enough people tender their shares to Brookfield...they may withdraw the offer and proceed to sell their 19.5% stake which will depress the SP of IPL from current levels. Those investors with a longer term investment horizon may find such a development as a buying opportunity....[/quote]