OTCPK:ICPVF - Post by User
Post by
Legocreatoron Jun 03, 2021 8:50pm
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Post# 33327096
BIPC vs PPL
BIPC vs PPLBIPC - $19.75 vs PPL - $ 19.45
For the income investors........wouldn't it be a better idea for PPL to take over IPL vs BIPC unless there is another higher offer on the table? If your a PPL shareholder you will get a dividend increase once the deal goes through and future increases once HPC gets up and running.
The board of directors of Inter Pipeline (the "Inter Pipeline Board") continues to unanimously recommend the Pembina Transaction to Inter Pipeline shareholders, which is highly strategic for both parties. Inter Pipeline shareholders will benefit from a 175 percent increase to their monthly dividend upon closing and share in significant annual synergies. The Pembina Transaction will also enable shareholders to participate directly in the cash flow growth from the Heartland Petrochemical Complex that is expected to enter service in early 2022 as well as Pembina's extensive investment opportunities. Key highlights:
- Combination of highly connected and complementary assets, resulting in greater vertical integration, expanded customer service offerings and enhanced global market reach to maximize the value of products produced in the WCSB;
- Near-term synergies of $150-million to $200-million annually, which are expected to immediately contribute to meaningful adjusted cash flow per share accretion upon closing of the transaction;
- Once the Heartland petrochemical complex (HPC) is in full service, the combined company is expected to generate $1.1-billion to $1.4-billion of adjusted cash flow from operating activities after dividends annually, greatly enhancing its ability to finance existing and future capital investment;
- Combination will accelerate and derisk accretive investment opportunities across various value chains, allowing for deployment of capital into projects at attractive rates of return. In addition to the projects currently under construction, the combined company has visible and highly probable unsanctioned investment opportunities in excess of $6-billion;
- Strong financial platform, in adherence with Pembina's financial guardrails, with the addition of significant long-term contracted cash flow and long-lived underlying assets to Pembina's existing strong foundation;
- Pembina's monthly dividend to increase by one cent per share, or 4.8 per cent, to 22 cents per share following closing of the transaction. Following the successful commissioning and in-service of HPC, currently expected in 2022, incremental cash flow from the project is expected to support a further increase to the monthly dividend of an additional one cent per share, to 23 cents per share;
- Shared commitment to environmental, social and governance (ESG) priorities, including investments that reduce the combined company's emissions intensity to contribute to a lower carbon economy. Incremental opportunities available to the combined company to be advanced in due course, prior to closing;
- Inter Pipeline shareholders will benefit immediately from an offer that provides a premium to the current trading price, an immediate 175-per-cent increase to their monthly dividend upon closing, and by sharing in the synergies and enhanced growth potential arising from the combined company.