Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi James and Co. Thanks as always for your terrific commentary...just wondering whether you could comment on the APA rights offer (ie worth accepting the offer ?) and what the deal for Alinta Energy (Pilbara) means for the company's prospects going forward. If one were holding this stock primarily for income ..is this realistic in light of the above takeover. Many Thanks Don
Hi Don,
We own APA in our Income Portfolio and are looking to increase our weighting into this weakness. The raising is structured as a share purchase plan (SPP), not a rights issue, however at this stage, we intend to participate. The Alinta deal we think is a good one in the longer term and history tells us buying APA on a yield in excess of 6%, which it is now, will generally be profitably over time.
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