Brookfield Infrastructure revises takeover offer to Inter Pipeline
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Brookfield hikes bid for Inter Pipeline to $6.85bn

16 Jul 2021 (Last Updated July 27th, 2021 12:28)

The revised takeover offer shifts the focus to rival suitor Pembina Pipeline, which made an all-stock offer of $6.75bn.

Brookfield Infrastructure Partners has increased its cash-and-stock offer for Canada’s Inter Pipeline (IPL) to $6.85bn (C$8.58bn), topping Pembina Pipeline’s $6.75bn (C$8.5bn) offer.

The latest offer valued Inter at C$21.23 per share, a premium of C$1.53 or 8% compared with Pembina Pipeline’s offer of C$19.70 per share as of 14 July 2021.

The company raised the cash portion of its bid by 2.6% to C$20 for each Inter Pipeline share compared with zero cash consideration in Pembina’s offer.

Shareholders electing for the stock would get 0.25 of a Brookfield Infrastructure share, subject to proration.

Previously, IPL recommended that shareholders vote for the offer made by Pembina.

Commenting on the latest offer, Inter Pipeline said: “Inter Pipeline advises shareholders that no formal revised offer has been made by Brookfield, and as such, there is no need for shareholders to take any action at this time.

“A formal recommendation by the board will be made to shareholders in due course.”

Brookfield Infrastructure had earlier offered approximately C$19.50 in all-cash per Inter share, or 0.225 of Brookfield’s Class A share.

Brookfield Infrastructure already owns a stake of 19.65% in Inter Pipeline.

The revised offer comes after the Alberta Securities Commission ruling that Inter did not indulge in any ‘improper defensive tactics’ to resist hostile takeover bids made by Brookfield.