Brookfield Infrastructure Partners on June 18 revised its buyout offer for Inter Pipeline Ltd. to include an option for an all-cash consideration, instead of a mix of cash and stock.
Brookfield’s revision comes as the investment firm tries to beat a rival bid from Pembina Pipeline Corp., which has been recommended by Inter’s board.
Pembina has an all-stock bid of about CA$8.3 billion (US$6.71 billion), while Brookfield had offered CA$8.48 billion with 74% cash.
On June 18, Brookfield said Inter shareholders may now elect to get CA$19.50 in all cash per Inter share, or 0.225 of Brookfield's class A share, valued at CA$19.99 per Inter share as of close on June 17.
Brookfield also said it was prepared to raise its offer by up to CA$0.901 per Inter share, to CA$20.401 per Inter share, pending the outcome of its challenge before the Alberta securities regulator.
The company last week filed an application with the regulator to do away with Inter’s CA$350 million termination fee to Pembina, saying it would increase its takeover offer for Inter if the fee was reduced or eliminated. (US$1 = 1.2363 Canadian dollars)
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