Investment Q&A

Q: Do you know the reason for low volumes for this security? I'm interested in purchasing for a non registered account as it has come off a little recently. A little surprised given the size of the company. US listed BIP has much higher volume but will come with a withholding tax correct?

Q: Hi Peter
it was closed to $ 100 and now dropped down to $ 86
it was trading at a premium to BIP.un as the dividends are eligible for tax credit
whereas Bip.un was not
now that it corrected , and also with the take out possibility of IPL

the shares could be diluted due to the above

is BIPC.ca a decent stock to buy for
1) generates dividends for income
2) slow appreciation for capital gains with safety of capital in consideration

I have a partial position, should I wait for the competition for takeover of IPL
to settle 1st before buying more of BIPC ?

Thanks!

Michael

Q: Hello 5i Team

BIPC in their July 19 press release quoted the Institutional Shareholder Services (ISS) report that recommends IPL shareholders vote for the BIPC offer to purchase IPL.

Is the ISS report available to general investors? From what I read on ISS website (buried under the Press Center page), ISS reports are not made public, nor does ISS issue press releases.

Is BIPC being disingenuous in touting the ISS report, when small investors are not able to review the ISS report and make their own decision on whether to accept the recommendations of ISS and vote on the BIPC takeover?

Thank you

Q: Hello 5i Team

With respect to the ongoing take-over/merger of IPL by BIPC/PPL, I have the following questions:

1 – There appears there is a time lag of 22 days from the filing date of BIPC “Notice of Variation” to the meeting date (i.e. third Notice of Variation filed July 15 to proposed meeting date of August 06). Is this a stipulated regulatory
requirement?

2 – If the required notice period is 21 or 22 days, then is it correct that PPL would NOT be able to revise its offer of 0.5 shares of PPL for each IPL share prior to BIPC meeting date?

3 – At current prices, for BIPC/IPL/PPL, who is buying/selling IPL in the market?

If an IPL purchaser would want to vote for the BIPC offer, they could buy shares of BIPC cheaper than the equivalent amount of BIPC they would receive in the BIPC offer.

If an IPL purchaser would want to vote for the PPL offer, they could buy shares of PPL cheaper than they could buy equivalent amount of IPL shares.

It would make sense for existing shareholders (from prior to announcement) to hold and wait for the results of the bidding war unless one wants cash from either proposal.

4 – What are 5i thoughts on who will ultimately win this takeover battle?

Thanks

Q: Hi 5i team,
I have been holding onto IPL, and hoping to unload it at maximum value when the battle between PPL and BIPC is 'done'. Do you think we are there yet? I plan to move the funds away from the energy sector so I'm not looking to pick up PPL shares.
Thank you,
Ian

Q: Does the Brookfield offer for IPL include an option to only receive .225 of a BIPC share, instead of a mixture of shares and cash. I got lost in the fine print when they started talking about pro-ration and market value of the incremental 8 million BIPC shares.

Q: I am drastically under invested in utilities. I presently hold the following - each is under a 1% weighting - AQN, ACO, BIPC, BEPC, BEP.UN, CU, and Fortis. Which would you sell? Which would you add to? All are in corporate non reg acct. Also want to increase my US and International exposure. Is there a reason not to do it in this sector?
Would appreciate US and International companies you favour. 5 year hold.
Thank you.

Q: Dear 5i,
If I hold BIPC.CA, BIPC.US, BEPC.CA, or BEPC.US in my non-registered Canadian account. do I have include them if I have to file Form T1135.
If yes what is the country code?

Q: Hi. I’m writing in response to Andrew’s earlier question regarding whether or not he needs to report BEP.UN on his T1135. I’d looked into this earlier this year for BEPC, BIPC, BIP.UN and BEP.UN. Brookfield’s web site addresses this specifically. Below is the link, and direct quote.

https://bep.brookfield.com/stock-and-distribution/tax-information

“Are units considered foreign property for the purposes of the Canada Revenue Agency T-1135 Form – Foreign Income Verification Statement?
No.”

Hope this assists.

Regards

Q: Now that Brookfield Renewable has come down so much, how does the valuation compare to Brookfield Infrastructure?

Q: Hey Team,

Thoughts on industries or specific companies to target after the federal budget announcement?
Thanks,
Harrison

Q: I am holding BEPC and BIPC in my non-registered account and BEP.UN and BIP.UN in my RRSP. A friend told me that there may be tax implications when holding LPs in and RRSP - is this true?
Thanks for your comments!

Q: Hi,
Can you help me to understand why the premium of BIPC is so high over BIP.UN? It increased to more than 40% today, $94 vs $66. On the other hand, the spread between BEPC vs BEP.UN is much narrower, up and down around 10%. Do you expect the the gap between BEPC and BEP.UN to widen? Thanks,
Martin

Q: Hello,
2 part question regarding the above companies for a 30 year old investor with a 10+ year hold horizon:

1. In a TFSA account I currently own BNS and BUS. Would you swap these 2 out for LSPD, KXS and DND today? If so, would you please rank the 5 companies in order of preference in a TFSA account?

2. I have some cash to deploy in my RRSP account. I was wondering if you could also rank the following companies to buy today once again for a 30 year old with a minimum holding period of 10 years: BAM, BIP.UN, BIPC (in case you think that one is better than the other in an RRSP), BNS, XIU and VEQT. I would be able to purchase 3 of the 6 mentioned so what would be your preferred mix in this case?

Thanks for your help!

Q: What's the reason behind the current slip of BEP.UN/BEPC and BIP.UN/BIPC? These two combos should be steady industrial stocks and not subject to the stumble currently affecting the tech stocks? I know both had been up nicely over the past year but that's no reason to reverse so sharply of late. Any insight you can share? Thanks.

Q: The differential between BEP.UN and BEPC is down to a reasonable 7.8%. But between BIP.UN and BIPC the differential is very high 23.7%.
Can you explain the reason for this discrepancy. I believe this would be an ideal time to sell BIPC and use the proceeds to buy BIP.UN. Do you agree.
Thanks for your great service.
Steve

Q: Hi Peter and team, Just thought I would ask about the ethical aspects of this so called hostile take-over? In my mind BIPC only with the support of BAM.a and BUFFALO AQUISITION CORP. aka BIF IV (looks like a shell company to me that) are trying to BULLY in here on long suffering shareholders of IPL. Let me try to put this in perspective, IPL has spent nearly four years and nearly four billion dollars engineering, designing, procuring, and constructing and world scale propane dehydrogenation (PDH) and polypropylene (PP) facility, all to the boohoos of the so-called "investment community". The projected increase to IPL's EBITDA is estimated to increase by $400million to $500 million (a double), not including the recent increase in PP prices. Do you think IPL could get one good word out of anyone? Nope, they all stayed clear, even after IPL raised $700 million with the sale of 50% their Europe storage assets. Now IPL is self funding the project thru to it's completion (which significantly de-risks the project from a monetary point of view. Last CC management shared they are ramping up for testing and commissioning which looks like PDH should be up and chugging along by summer. I've been working in the energy industry for 42 years and can share, that a typical approach is to use IP, from patented chemical processes and copyrighted proprietary equipment that is proven. This isn't rocket science. What recourse do shareholders have considering BIPC aka BIF IV have acted unethically by acquiring an additional 10% of IPL without disclosing this to anyone? Who are the responsible authorities that should be looking into this? I would like to thank BIP for acknowledging the new facility has a great business plan as well as PPL ,as they have an almost exact replica (delayed by COVID19) planned in next year.

Q: Hi Peter, further to my previous question, Please advise what you have (and your source) for the short positions for the above equities. I have:
BAM.A=1.32%
BIP.UN=0.62%
BIPC=1.56%
IPL=0.00%
PPL=0.84%

Thanks

Q: What do you think of BIP's offer for IPL?

I note that the stock price of BIP is down about 20% since Dec 24. I also think that investors may be in part selling now to shy away from the fossil fuel industry. Yet the pipeline industry seems less impacted by the price of oil and the regulations barring new pipelines. Wouldn't this make the existing pipes more valuable.

So, does all this imply that this downdraft is a good buying opportunity for bip (which I already own a lot of)?

Q: What are your thoughts on BIP's bid for IPL? I hold some IPL - wondering if I should sell it and cut my losses since it's trading at a $1 premium over the $16.50/share offer, or what the benefits/downsides are to waiting it out.