Issue 48 – Alimentation Couche-Tard is Taking Flight


Issue 48 – Alimentation Couche-Tard is Taking Flight

On November 26th, Alimentation Couche-Tard Inc (ATD/B) announced an unsolicited CAD $8.9 billion offer to buy Australian convenience store chain Caltex. It’s notable that should this transaction be realized; Couche-Tard has the means to the finance the deal entirety with debt. However, under such a scenario we are cognizant that Couche-Tard’s balance sheet may become uncomfortably ‘stretched.’ Therefore, it should come as no surprise if the company announced their intention to raise between $1 to $2 billion in financing.

Disclaimer: Palos Funds are shareholders of ATD/B.

 

By Charles Marleau, CIM

Continue Reading in PDF

By Charles Marleau, CIM

 

Click to Read Macro View

By Hubert Marleau

 

Click to Read Options Corner

By Robert Mendel

 

Click to Read Palos-Mitchell Report

By William Mitchell