Circ re. Positive Investee Company Update – Acquisition of AltaGas
Middlefield Canadian Income PCC (the "Company")
(a protected cell company incorporated in Jersey with registration number 93546)
Middlefield Canadian Income - GBP PC (the "Fund”)
Legal Entity Identifier: 2138007ENW3JEJXC8658
24 October 2019
Positive Investee Company Update – Acquisition of AltaGas
Middlefield Canadian Income PCC (MCT), the London listed Investment Company that invests in a diversified portfolio of primarily Canadian and US equity income securities, is pleased to provide the following positive update concerning the acquisition of one of its core holdings.
On 21 October 2019, AltaGas Canada Inc. (“ACI” or “AltaGas”) announced that two large Canadian pension funds, Public Sector Pension Investment Board (“PSP”) and Alberta Teachers’ Retirement Fund Board (“ATRF”), will acquire the company at a price of C$33.50 per share. The C$1.7 billion all-cash transaction equates to a 31% premium to the previous day’s closing price.
MCT’s holding in AltaGas represents c. 2.5% of the Company’s net asset value. The Company has held ACI since it listed on the Toronto Stock Exchange in September 2018 at the IPO price of $14.50 per share, and the position has generated a total return of c. 140%.
AltaGas is a Canadian company with a diversified portfolio of high-quality regulated natural gas utilities and renewable power assets with long-dated contracts. ACI serves approximately 130,000 customers in Canada with an emphasis on low carbon energy. 100% of ACI’s EBITDA is either regulated or serviced by long-term contracts. This revenue supported its quarterly dividend payments which yielded c. 5% prior to the acquisition.
Commenting on the Transaction, Dean Orrico, President, Middlefield International Limited said:
“Another of MCT’s portfolio companies has been taken private at a significant premium to its last market price. Underpinned by stable and consistent cash flows and offering investors a significant source of reliable income, AltaGas is a good example of the high-quality companies the Company invests in. Since its IPO, ACI has paid an attractive quarterly dividend and maintained a conservative payout ratio while also delivering organic growth for shareholders. These fundamental characteristics are highly desired by institutional investors and further validate our conviction for owning companies which exhibit steady cash flows, growing dividends and competitive risk-adjusted returns. The acquisition of ACI follows Blackstone’s announcement to acquire another of MCI’s core holdings, Dream Global REIT, at an 18.5% premium in September 2019.”
Enquiries:
| Middlefield International Limited | 01203 7094016 |
| Dean Orrico | |
| Investec Bank plc | 020 7597 4000 |
| Helen Goldsmith | |
| Neil Brierley | |
| Buchanan | 020 7466 5000 |
| Charles Ryland | |
| Victoria Hayns | |
| Henry Wilson |
Notes to Editors
Middlefield Canadian Income PCC aims to provide long term returns through dividend income and capital growth from a diversified portfolio of predominantly Canadian equity income securities and US stocks. The Company has been listed since 2006 as London’s only listed Canadian equity income fund.
For more information on the Company, please visit our website and our latest monthly commentary document.
