That’s a fair question Fanger, but the answer is not easy to...

That’s a fair question Fanger, but the answer is not easy to explain. Keep in mind the IER from EY was 82 pages, and that excluded the RISC report (Technical Basis) in Appendix H of a further 73 pages.

It’s not a simple process to value these things either, and for reference the entire IER is estimated on Page 270 of the Scheme Booklet to have cost $143k.

Valuations are done based on a myriad of inputs, which generally populate a tool which provides a range of the valuation. Like any estimate, valuations can be highly subjective, and are very dependent on the quality of information provided, assumptions used, and proposed business strategy.

For example, what will the pipeline tariffs or gas prices achieved be in 2020, or other future years? Just these two examples can have a major impact on the valuation of CTP.

Although perhaps not intentional, this is a distinct disadvantage that minority shareholders have in these circumstances… the valuations are too complex and expensive to easily review and/or undertake on your own.

As they are subjective, and since the company employing the IER consultant usually provides much of the input data (and has a vested interest in the outcome being a specific number), then it is easy for the valuation to come up with an answer whoever commissioned it wanted.

I understand either the CPSA or OptionCo (not sure which one) commissioned their own valuation. As noted earlier I did my own small valuation review and came up with a number in the 30’s (excluding the CVN scope).

The above probably doesn’t help you much unfortunately, but just thought I’d share…