It was only a couple of weeks ago that I wrote about Brookfield Infrastructure (BIP)
looking to deploy significant amounts of capital into new
cash-generating assets, and the company has moved quickly to do just
that. In just that short span of time, Brookfield has participated in
two deals with a combined headline value of $4.5 billion, with both
deals looking pretty typically “Brookfield-esque” in terms of structure
and long-term opportunity.
As is typically the case,
Brookfield Infrastructure management provided minimal financial
information, and that certainly complicates the modelling process. Even
so, I believe these deals add about 1% to the company’s long-term AFFO
growth rate and about $2.50/share to the long-term discounted fair
value. While Brookfield is usually careful not to bite off more than it
can chew, I’d note that the company’s ongoing use of equity and debt to
acquire minority stakes leaves open the possibility of more acquisitions
in the not-too-distant future.
Read more here:
Brookfield Infrastructure Gets Moving On New Investments
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