RE:RE:RE:RE:Price targetCapharnaum wrote: Method wrote: i think they should acquire Atlantic Power (ATP). Stock would double in a few months.
Too costly and not enough renewables. Wouldn't touch that.
If you look at the cash flow profile of ATP, $180m in EBITDA and trading at the same multiplel as PIF with a lower equity value it provides a ton of free cash flow for PIF to invest in South America. It gives PIF an NYSE listing and access to a cheaper cost of capital. Plus the added liquidity will bring in passive capital as ETF eligibility comes into play. It has a decent amount of hydro so on a combined basis especially with super charged renewable growth in SA from all of the capital will make it very attractive for ESG players. The diversification geographically will also bring in new buyers.
They compliment each other very well.
10x EBITDA w/ Polaris alone is $29. 10x EBITDA with a merger of equals with ATP is $53.
I think its an easy decision.