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I agree with Doctrine that Chinese controlled Husky most likely would not have been allowed to purchase IPL, nor did they likely have the financial strength to do so.

People tend to forget that other than their US refining assets which I think are crown jewels for Canadian producers, most everything else in Western Canada (and their NF offshore holdings) are rather second tier (no economies of scale). I don't know anything about their SE Asian assets. Li Ka-Shing could see the writing on that wall and was/is willing to cede control in the combined entity to a rather minority 27%? position in return for hopefully better financial returns.

IPL should now be courting the Saudis for an equity interest in Heartland to get a shot of capital juice in the arm.

P.S. Pembina Pipeline was wise to bring in equity partners for their delayed PP project, and the Kuwaitis for the very 'unlikely' progression of their Jordan Cove LNG plant.
 

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If anything, the PP plastic that IPL will make is the "good plastic" and will be in hot demand. Most likely there will continue to be a transition from the (apparently) bad disposable plastics. Y
etc etc
The problem is that even the so called 'good plastic', will also be dumped in the garbage and end up in landfills and in lakes and ocean. Once there, there are no "good plastics" . Not even most bio-plastics.

Making out that this is just a big joke doesn't help. Buying and owning IPL may be ;)
 

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IPL has a takeover offer from Brookfield Infrastructure for $16.50 a share.


I have 2000 shares. I sold 1080 shares at $19 back in February and bought back 2000 at an average price of $10.97 in April/July.

It's not a friendly/insider offer so it remains to be seen what the Board recommends - in fact, this is more characterized as a hostile offer. I think the price will have to go a little higher to be accepted. Not sure how much higher but I think at least a few more dollars.

Let's not forget IPL owns a huge chunk of Alberta pipelines between some of the biggest and best funded oil sands projects that are going to be around for decades. Those pipelines are not going to be replaced and everyone sees how hard it is to build new ones. Irreplaceable assets.
 

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If you accept the BIPC shares, how is your cost basis determined on the new shares? Closing value on the day you receive them? Something else?

and likewise, if you accept the new shares, what will reported as the disposition of proceeds of IPL on T5008?
 

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80% of the offer is cash so I think you always have that option. I would not likely accept BIPC shares so I'm not sure about the disposition. I'm likely to sell at some point - pipeline valuations have come down quite a bit.

BIPC indicated fair value of $17.00 to $18.25. At $18.25, IPL would be taken out to a premium to every other Canadian pipeline company, so I doubt the offer goes higher than that unless there is a competing bid.

Should be an interesting few weeks ahead.
 

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Wow. I have 1500 shares. ACB around $17. So.... easy come easy go? lol.

"Brookfield Infrastructure believes the Company’s view fails to recognize the capital market realities facing energy-based infrastructure companies now and in the future. "

That sounds potentially like hyperbolic rhetoric to justify their low-ball offer... It's certainly not clear that funding access for small, economically viable petrochemical plant cash-cows is going to caught up in the same net as the few, unlucky, high profile oil projects that will be targeted by governments/banks, who have to face the "capital market realities". And IPL already has their pipelines.
 

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Have held IPL since 2012 at an ACB of $16.25 Watched it run up all the way to almost $40 in 2014 before watching it slide all the way down again. Not sure if this deal will happen. Even if it does I already own Brookfield Infrastructure. If the deal goes through I will likely sell before closing and take the cash.
 

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I'll take the cash but feel IPL is under valued by this offer (I'd be in the black at the offer price). I hope the deal fails to go thru, their pipelines are irreplacable in the silly environment we find ourselves in. I'd rather them wait till Heartland has been running for a year before entertaining offers.
 

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Well, in Brookfield's favour, is that pipelines have definitely been re-rated downwards across the board. ENB, TRP, PPL, IPL, etc. All of them are basically still 20% or more off their highs. This takeover is not going to be at a discount to those other companies.

I think the deal will eventually happen because although it is opportunistic, they have probably put this bid in a good place where they have room to increase it and still get the assets at a price they can live with. I'm not sure it gets to $20 though.
 

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hey, money is money. If I end up with bip, it is still in the same business, sorta. Or wait for it to go thru sell, and buy another pure pipeline, though TRP and PPL are already part of my utilities stable of current holdings.
 

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If IPL rejects the offer, does the stock tank again? Or is the offer price more aligned to its value?
If IPL management reject the offer, this will almost certainly head towards a shareholder vote and management cannot block it - this will be a permitted bid under IPL's official shareholders rights plan and will remain open for 105 days after being received.

IPL does not have a single major shareholder or any sort of dual-share voting structure, so if Brookfield they offer enough then it will get accepted. The stock trading at $17.40 signals to me that current shareholders are pricing in at most a low $18.xx bid in the next 2-3 months that will be acceptable to them. I don't see $20 happening.
 

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Although people are justifiably tired of the performance of this stock, it should be obvious to the owners of this company that this bid IS way too low. If you bought the stock at $10 it will make you a profit, but you will still find it hard to take your $18 plus dollars and find a similar stock of comparable value.

I am a little surprised why PPL and ENB, etc, have not moved up. I would think a few of the sellers today would still want some pipeline exposure in their portfolio, but perhaps all the sellers today are pipeline avoiders now. Hard to tell.
 
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