Q: How significant is the BEP/CCO acquisition of Westinghouse Electric to each company?
With appreciation,
Ed
With appreciation,
Ed
5i Research Answer:
The deal was structured really more for CCO and for one of the Brookfield investment partnerships. BEP only ends up with 17%, with a $750M investment, or about 3% of its market cap. We think it is a decent deal, but it is not likely to move the needle much at BEP. CCO ends up with a direct 49% interest, worth about 20% of its current value. CCO indicates it is accretive to earnings but does not specifically quantify the impact.