ATCO has agreed to a CAD 6.6b takeover by Emera, paired with a spin off of its industrial services arm, a deal that turns one ATCO share into Emera plus New ATCO. The announcement has flipped ATCO from a slow mover into a deal-driven story, with a 7 day share price return of 7.89%, a 30 day gain of 8.28%, and a year to date share price return of 40.60%. The 1 year total shareholder return of 62.45% and 3 year total shareholder return of 157.42% show the latest surge comes on top of a longer run rerating as investors reassess both growth potential in the utilities assets and the risk profile of a more focused industrial services business after the spin off. ATCO last closed at CA$79.54, while the most followed narrative pegs fair value at CA$91.00, suggesting the deal news sits on top of an already optimistic long term earnings story leaning heavily on its modular housing and infrastructure platform. On the other side of that CA$91 fair value story, ATCO trades on a P/E of 49.2x, against a peer average of 40.2x and a fair ratio pointing to 39.5x.
Emera IncorporatedEmera agrees to acquire ATCO in a CAD 6.6b takeover, a major M&A event for Emera.
China Datang Corp Renewable Power Co LtdATCO agrees to a CAD 6.6b takeover by Emera paired with a spin off of its industrial services arm.
