Tidewater Midstream and Infrastructure Ltd T.TWM

Birch Hill Equity Partners

[longrun86]

Hi folks,

While the share price continues to crater and we await the March 14th news release, I wanted to point out something that I believe is material and is currently at play regarding Birch Hill Equity Partners.

Below is an excerpt from the new release:

TORONTO, September 10, 2018 – Birch Hill Equity Partners Management Inc., as general partner of each of Birch Hill Equity Partners V, LP, Birch Hill Equity Partners (US) V, LP and Birch Hill Equity Partners (Entrepreneurs) V, LP (collectively, “Birch Hill”), announced today that it has agreed to purchase 43,703,571 common shares (the “Purchased Shares”) of Tidewater Midstream and Infrastructure Ltd. (TSX: TWM) (“Tidewater”) from AltaGas Processing Partnership (“AltaGas”) pursuant to a share purchase agreement. The Purchased Shares will be acquired for cash consideration of $1.45 per Purchased Share and $63,370,178 in total. The purchase and sale of the Purchased Shares is expected to close on September 28, 2018 or on such earlier date as may be agreed to between Birch Hill and AltaGas.

 

The Purchased Shares represent approximately 13.3% of the issued and outstanding common shares of Tidewater. Birch Hill currently owns 29,828,700 common shares of Tidewater, representing approximately 9.1% of the issued and outstanding common shares of Tidewater. Immediately after completion of the transaction, Birch Hill will own 73,532,271 common shares of Tidewater, representing approximately 22.3% of the issued and outstanding common shares of Tidewater.
 

What we all know about Private Equity funds is that each Fund effectively is a renter of the shares because the fund will have to wind down. Birch Hill had disposed of most of the companies from that era.

Something will happen with the Birch Hill shares and I am going to speculate that it will happen relatively soon. I don't know if it will be good or bad but it will be something!

As a reminder, Robert Colcleugh was installed by Birch Hill first as a Director and then as a CEO. Why would he all of a sudden "depart" the Company.

My speculation is simple, Birch Hill has decided that it will either work to find a buyer or become a buyer for Tidewater and Tidewater Renewables and that Robert will act as the head of the buying group (given his M&A background this makes sense). Birch Hill has a history of taking public companies private and it has used this playbook in the past (Softchoice et al) and remains an active investor into public companies (GDI et al).

Maybe I am out to lunch but the whole thing seems too fishy to me to be mere coincidence. We will find out on March 14th.

LR

[Tyee1989]

TWM share price is extremely manipulated. Yesterday I looked an hour before opening and there was an ask at .60. That's people simply trying to manipulate the sp. last time I saw that start to happen was interpipeline. It was taken over a couple months later. The take over company tried to get it as low as possible before trying to take over.

[Mephistopheles3]

Interesting take - I would agree that Birch Hill is running the show here. Too hard to speculate based on the limited information that we have.  The only things we know for sure is that CEO & CFO were sacked suddenly and a BoD member resigned.  If your case was plausible - I think this would have been announced as part of the next quarter results as a positive spin.  

[nkbourbaki]

Interesting discussion.  While we're throwing theories around, here's another: Rob's interim appt would likely have been a 1 yr deal, wrapping up at end of Nov.  His permanent appoitnment was dislcosed almost paranthetically in the Q3 release, without the typical kind words from the Chair.  The pipestone transaction wasn't yet over the line and HDRD just started

[Mephistopheles3]

Thanks for your input - based on some high volume in the last 2-3 days, I'm feeling a bit more optimistic about TWM.  There were 3x purchases today of 250K block of shares and there was a 2 million purchase 2-3 days ago.  At this level, this is an institution or big fish and they would not invest prior to actually calling up management and asking them what is going on.  No one&

[pennydredful]

You  mentioned  these  shares  were  bot.  Remember  another  party  sold   them. 

[nkbourbaki]

Your mention of Andrea Decore reminded me of a comment of hers on LinkedIn that expressed concern about the possibility a change in fed gov't could wipe out the renewable fuel industry.  This is one of the things that worries me about TWM's very large exposure to that business.   I thought perhaps my worry was naive, but Decore's post attests that people "in the

[longrun86]

I am a big proponent of companies producing and selling things that customers want and being very reluctant to sell what Governments want.  I see value in the Renewable Diesel but am reluctant to see them pour money into projects where they rely on the good graces and whims of Government to be successful.  The market is shifting and so too must Tidewater. Good projects will get