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Pembina Pipeline Corp T.PPL

Alternate Symbol(s):  PBA | PBNAF | T.PPL.PR.A | T.PPL.PR.C | T.PPL.PR.E | PPLAF | T.PPL.PR.G | PMBPF | T.PPL.PR.I | T.PPL.PR.O | T.PPL.PR.Q | PPLOF | T.PPL.PR.S | PMMBF | T.PPL.PF.A | T.PPL.PF.E | T.PPL.PF.B

Pembina Pipeline Corp is a Canada-based energy transportation and midstream service provider. The Company owns pipelines that transport hydrocarbon liquids and natural gas products produced primarily in Western Canada. It also owns gas gathering and processing facilities and an oil and natural gas liquids infrastructure and logistics business. It operates through three segments: Pipelines, Facilities and Marketing & New Ventures. The Pipelines segment provides customers with pipeline transportation, terminalling, and storage in key market hubs in Canada and the United States for crude oil, condensate, natural gas liquids and natural gas. The Facilities segment includes infrastructure that provides Pembina's customers with natural gas, condensate and natural gas liquid (NGL) services. The Marketing & New Ventures segment undertakes value-added commodity marketing activities including buying and selling products, commodity arbitrage, and optimizing storage opportunities.


TSX:PPL - Post by User

Bullboard Posts
Comment by OnlyFactson May 05, 2017 11:48am
306 Views
Post# 26208848

RE:RE:Strong Results and Beat on EPS/Revenue

RE:RE:Strong Results and Beat on EPS/RevenueYou see how PLL share price is bound by its acquisition of VSL and won't go over $43.5? That's because you can always "Buy" PPL indirectly by buying VSN at or below $18.65. That's the price Pembina has agreed to pay VNS shareholders in a stock deal. 

Furthermore VSN is not likely to trade near $18.65 before closing because 1) time value of money (the deal won't close for another 4-6 month) and VSN shareholders can in the meantime collect their monthly dividends... 

There is also a slight chance that PPL shares may trade at a lower price if there is a major market downturn when the PPL shares go down but the VSN acquisition price remains fixed at $18.65 That means even if say PPL is trading way below $43.50 you'll end up getting $43.50 PLL shares when the exchange of the shares takes place upon closing.  Mind you part of that exchange also may be in cas (up to $4.85 per share) which protects VSN shareholders on the downside but not if PPL goes up immediately after closing. 

Some VSN shareholders are therefore happy to sell now and either take the money and run, or buy their PLL shares now. 
Bullboard Posts