For what it’s worth, my concern is that this deal does go through, as it would stretch our balance sheet and worsen our solvency ratios (or, even worse, dilute us at a bad price in the event of a new capital raise). Plus, it would add significant development/execution risk.
At this stage, I think TCL should just focus on their current asset base (and existing project pipeline), take an opportunity to appease regulators/politicians, let someone else (likely) overpay for the Westconnex and, in a couple of years, once the vast majority of the current development pipeline has become operational, be in a better position (both financially and operationally) to bid for the next meaningful acquisition.
IMHO & DYOR
TCL Price at posting:
$11.40 Sentiment: Buy Disclosure: Held
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