Incitec Pivot Ltd T.IPL

Primary Symbol: ICPVF

Chemicals Basic Materials

Incitec Pivot Limited is an Australia-based manufacturer and supplier to the resources and agricultural sectors. Its segments include Asia Pacific and Americas. Asia Pacific segment includes Fertilisers Asia Pacific (Fertilisers APAC) and Dyno Nobel Asia Pacific (DNAP). Fertilisers APAC manufactures and sells fertilizers in Eastern Australia and the export market. It also manufactures, imports and sells industrial chemicals to the agricultural sector and other specialist industries. DNAP manufactures and sells industrial explosives and related products and services to the mining industry in the Asia Pacific region, Turkey and France. Americas segment includes Dyno Nobel Americas, which manufactures and sells industrial explosives and related products and services to the mining, quarrying and construction industries in the Americas (Canada, Mexico and Chile) and initiating systems to businesses in Australia, Turkey and South Africa. It also manufactures and sells industrial chemicals.

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Comment by SargeXon Feb 27, 2021 3:32pm

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Post# 32679647

RE:RE:RE:RE:Hunker Down

Hey Zal

Interesting perspective. I also think that the Brookfield take-over is going to happen and I think they will only need to raise the offer to $18.50. Those Brookfield guys can be nasty fellows and they're pretty ruthless.

I used to be a big fan of Brookfield but had a couple bad experiences with them with some stuff around the BEPC split and the BPY take-over. I actually eventually sold all of our full position of each and now just hold BIP.UN from the Brookfield family. I also think those Brookfield guys do some really shady accounting and financial engineering and seem treat shareholders poorly.

Back to IPL. We've now sold 3200 of our 6700 IPL shares to partially hedge the whole take-over thing. I'll probably hold the rest for now and see how it plays out. When BIP took out Enercare, the share swap deferred the capital gains so I'm hoping that applies here and I ill swap half of our remaining 3700 to juggle our capital gains to try and avoid OAS clawback.

Very interesting stuff!!

Ciao
Sarge

zalmonella wrote:

There is a choice. Brookfield or anyone else cant do anything unless two thirds of the shareholders agree to sell.

I hope you're right. But my quick scan of Qtrade data shows 60% of holders longer than 1 year are institutions, and they have two reasons for being in IPL - cashflow from the divvy or capital appreciation. Neither position is exactly fulfilling their mandate right now, so this could be the ideal opportunity for some of them to get out for greener fields. That's all I'm afraid of. I don't think Mr Retail has any part in this - we're a minority and we're probably 50-50 in any offer. Those who bought in March will sell, those who held (like I did since 2016) wll hold, and if we get taken out at $17-18, will probably hold our BIPC to try to make up our losses.