OTCPK:ICPVF - Post by User
Post by
PabloLafortuneon Jun 05, 2021 2:18pm
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Post# 33336238
PPL is the better partner by far
PPL is the better partner by farIPL was a good stock pre Heartland unfortunately the BoD at the time and management took an unreasonable risk (Kudos to them for realizing what they did and now fixing it). With PPL we long term shareholders of IPL pretty much get our dividend back and we get the responsible BoD and management that we deserve for one thing. For another, they are similar businesses dealing with the same commodities and the same customers and there will be a lot of SG&A and operational savings. And last but not least, PPL has some expertise in Heartland which will make it more likely to succeed. BIP brings none of that to the table at least not to the extent that PPL does. And with a more appropriate share exchange ratio (0.55 to 0.6), we will have decent upside as well, perhaps to $30 (Heartland wasn't built in a day) which is more than can be said for BIP's offer. Last but not least, PPL is actually not as strong as you might think right now, for sure they benefit big time from the synergies, the iron clad cashflow of OST and the Heartland upside. This combination makes too much sense for it not to happen. They are better together.