Citicore Energy REIT doesn’t deny report of potential 30% stake sale

Citicore Energy REIT [CREIT 2.81 ?2.2%] [link] responded to a Biz Buzz article that claimed a “blue chip conglomerate” (BCC) was in negotiations to acquire “a little less than 30%” of CREIT in a deal that would be completed “in the coming days or weeks”. CREIT was asked to clarify. While the company said that it has not made any official statements and that it will provide the required updates when they’re available, it notably did not refute any of the claims from the sources in the article.

MB BOTTOM-LINE: The interesting part (to me) is where the CREIT shares come from. My bet is that the ultimate goal is for the cash to flow up to CREIT’s parent company, Citicore Renewable Energy Corp (CREC), to allow CREC to cash up and fill any project funding needs that may be lingering after CREC pushed its IPO back to wait for better “market conditions”. The BCC could buy primary shares from CREIT, which CREIT could then use to purchase projects from CREC, which would both grow CREIT’s dividend and put cash on CREC’s desk. Or, for a faster transaction, BCC could buy secondary CREIT shares from CREC directly. Sounds like we’ll find out soon.