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Altagas Ltd (ALA.TO)

19K views 43 replies 20 participants last post by  ludetuner 
#1 ·
Altagas Ltd sold off 10.1 million shares to buy Blythe Energy.

Stock down over $1.14 today, and sits at $34.90





"CALGARY - AltaGas Ltd. (TSX:ALA) has agreed to pay US$515 million to buy Blythe Energy LLC, which owns a 507-megawatt power plant in Southern California.

In addition to the natural gas-fired generator, the purchase from affiliates of LS Power Equity Advisory LLC includes major spare parts and a 108-kilometre transmission line in the state."


http://www.edmontonjournal.com/busi...rgy+partially+funded+stock/8147530/story.html
 
#38 ·
I own the common shares and like it. The subscription receipts (ALA.R) are a good option as well, especially in registered accounts. It might take 12-18 months for their WGL acquisition to close, so you need a long term time horizon. I would expect the shares to start to pick up 6-9 months out from close as it becomes more certain.
 
#39 · (Edited)
Can someone help me understand the WGL acquisition? Why did they offer double the market cap for WGL? How much synergy can they possibly find?

It seems like they are buying random utilities, all around the continent, when they aren't building new projects... also, all around the continent.

Do they have a focus?
 
#40 ·
It was only a 12 percent premiuum to WGL's closing price (not double). Still, I think the deal stinks and is a major distraction to ALA's focus/strategies in the west. Other shareholders don't like it either given where ALA shares have traded since the announcement. I'll probably hold on to my ALA shares and collect the dividend until (and if) there is a bump in ALA's stock price when the deal closes. I have no interest in owning an Atlantic seaboard utility.
 
#44 ·
Unfortunately the letter is pretty vague and that's doctrine, that's the one. I'm thinking their management seems to be pretty confident with the health of the company and don't want to be burdened with the administrative tasks for investors with small holdings. Just wanted to see if anyone else had any insight
 
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