picked some up yesterday!...seems like a steal at sub $22...darn near 11% and sr to partnership distributions....my take on why its been hit is recent ipo which once it sunk the original ipo investors fled and also the expected hike by fed in dec
Your distributions on NGLS have been tax deferred. The sale triggers recapture of the taxes you didn't pay. It's a choice you make when deciding to sell an MLP. This deal takes the choice out of your hands.
Help my math here - NGLS currently gets a dividend of 3.30. Now after the merger are we going to get .62 * $4,10? In their presentation they say the dividend is $4.10 for 2016. 62% of 4.10 is $2.46. That does not sound right to me.
Excuse a naive question, but where are you getting information on how this deal will become a taxable event to Targa MLP owners in a standard brokerage account? I could not find anything about it online and would appreciate any insights or links you might have.
Well there is a post on the InvestorVillage message board indicating that NGLS has the most requested 1 on 1 meetings at the RBC MLP Capital Conference (to be held this week in Dallas). Yahoo will not let me post the link.
Unless the offer is increased, I can't believe any unit holders would vote for this deal, it really should be 100% no vote. I believe the greed of the executives had them turn down the buyout offer summer of 2014. They were more worried about getting a pink slip than value for unit holders.
Greed by the executives has essentially ruined this company for the current holders. They should have left well enough alone and not rolled up the master limited partnership. If they needed to reduce the distribution somewhat to reflect current conditions that's okay, but to create a large tax consequence for current holders is absolutely unconscionable!
The GP is under no obligation to increase the offer. They're less concerned with the shareprice in the short term than ensuring the deal gets completed. It's up to shareholders to overwhelmingly reject this deal.
Then and only then will they get the message - their offer is woefully inadequate.
I still hold out some hope that a White Knight will ride to the rescue. Alas, it may be wishful thinking.