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Williams Companies Inc. (The) (WMB)
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Tidewater Midstream and Infrastructure Ltd. (TWM)
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Tidewater Renewables Ltd. (LCFS)
Q: what is your opinion of the growth of the two names and the likely hood of being taken out by a larger company in the same space, and who would be the likely candidates. thank you.
TWM is 23% owned by Birch Hill Partners, so it would need to agree to any deal. After strong recent growth with the sector, growth is actually expected to flat-line over the next two years. There is a lot of debt but the stock is very cheap, which can generate buyer interest. We don't like speculating on takeovers, but possible buyers could be: ENB, PPL, CNR, CP. On LCFS, TWM owns 68%, and we would expect it to sell this position down over time to raise capital rather than do an outright sale of the whole company. The stock has a higher valuation but earnings and sales growth is indeed expected to be very high over the next two years. Buyers could be: ENG, PPL, WMB
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