Post by
Experienced on Sep 07, 2023 8:01pm
The Real reason for the Sale
There has been a lot of bullsheet here about the reasons for the sale and talking about things that are not company specific.
If anyone cares to actually look at the financials for Dominion, the reasons are there in black and white.
Without going into a lot detail....in their last 10Q filing...
1....the have a significant deficiency in current assets vs current liabilities which needs to be addressed
2...the have about 1.7 billion in short term debt that needs to be paid before the end of the year
3...most of their debt is variable rate interest rate and so their interest payments have skyrocketted due to the increase in short interest rates
Bottom Line?
They had to sell some assets...plain and simple...no choice
ENB took advantage of this...BUT....when they assumed the debt as part of the deal they may need to finance it at high interest rates which could make the math for the deal somewhat less attractive. I suspect that given the long time line before the deal is closed that ENB is gambling that interest rates will be lower by the time they assume the debt. Time will tell whether this works for them. Those owning ENB, I recommend that you keep a close eye on how this plays out.