The infrastructure investor has been competing with Pembina Pipeline for the acquisition of Inter Pipeline
Brookfield Infrastructure Partners has sweetened its offer for Canadian midstream company Inter Pipeline to nearly CAD8.58bn ($6.85bn) for acquiring the shares it previously didn’t own in the latter.
As per the latest revised offer, the midstream company’s shareholders can opt to receive either CAD20 ($15.9) per share in cash without being subject to proration or 0.25 of a share of Brookfield Infrastructure, subject to proration.
The revised offer values each share of Inter Pipeline at CAD23.85 ($18.96).
Responding to the latest development, the pipeline operator said that Brookfield Infrastructure has not made any formal revised offer. The company added that shareholders need not take any action at this time and that its board will make a formal recommendation in due course.
Last month, Inter Pipeline agreed to be acquired by rival Canadian midstream firm Pembina Pipeline in an all-stock deal worth nearly CAD8.5bn ($6.76bn).
In February 2021, Brookfield Infrastructure had offered to take over Inter Pipeline for CAD16.5 ($13.1) per share.
After Pembina Pipeline’s offer, Brookfield Infrastructure raised its bid to CAD19.75 ($15.7) and subsequently to CAD19.9 ($15.82) per share.
Brookfield Infrastructure already owns a stake of 19.65% in Inter Pipeline.
Earlier this week, the Alberta Securities Commission dismissed Brookfield Infrastructure’s application to cancel Pembina Pipeline’s proposed plan of arrangement with Inter Pipeline. The commission also upheld the break fee that could be paid by Inter Pipeline to Pembina Pipeline under the arrangement in certain circumstances.
Inter Pipeline’s shareholders are scheduled to attend a meeting this month end for voting on the offer made by Pembina Pipeline.
The transaction with Pembina Pipeline values each of Inter Pipeline’s shares at CAD19.7 ($15.6). As per the terms, Inter Pipeline’s shareholders will be issued 0.5 shares of Pembina Pipeline for each of the Inter Pipeline’s shares owned.
The combined company will have a pro forma enterprise value of CAD53bn ($42.13bn).